Parents are increasingly making financial education a priority for their children, driven by a desire to equip them with essential life skills and a healthy relationship with money. This trend is occurring even as many parents admit they don't feel fully prepared to teach these topics themselves.
“This generation is really committed to doing better for their kids even though a majority of parents don’t feel equipped,” said Jennifer Seitz, director of education at Greenlight, a family personal finance app. Seitz noted that the landscape is changing with more available banking products, including supervised debit cards for children and gamified money apps.
Many parents are motivated to teach financial concepts because they didn't receive such education growing up. Naseema McElroy, a nurse who became a money content creator, began her journey into personal finance to pay off debt when her oldest daughter was an infant. Her learning led her to share knowledge with friends and eventually a broader online audience.
Experts recommend normalizing conversations about money by discussing costs and making it a part of daily life. Parents can ask questions like, “What does this item cost? Why do you want this item? Is it a need or a want?” and if a child receives an allowance, “How long would it take for you to save up for this item?” according to Courtney Pettway, CEO and founder of KidVestors, a financial literacy platform for children.
Carrie Joy Grimes, a personal finance expert and founder of WorkMoney, suggests giving children opportunities to make choices with small amounts of money. This helps them learn valuable skills such as saving for a desired item and the ability to say “no” to immediate wants.
“Learning to say no, learning to hold money to yourself for long enough to get the thing you want, it’s a really hard skill,” Grimes said. Bobbi Rebell, consumer finance expert at BadCredit.org, advises parents not to judge their children's spending decisions, framing them as personal preferences to build confidence.
Allowances can be a key tool for teaching the value of saving. Seitz recommends helping children set financial goals, visualize their progress, and celebrate when they achieve them. Tip jars, divided into categories like “savings,” “investing,” and “giving,” can also help children track their progress and stay motivated.
Making children active participants in financial planning, such as contributing to a goal like a summer camp, is also beneficial, according to Lindsay Bryan-Podvin, financial therapist and founder of Mind Money Balance.
Mistakes are inevitable in the learning process. Rebell emphasizes that parents should allow children to make and learn from their errors rather than intervening. Bryan-Podvin adds that parents should avoid negative emotional responses to mistakes, as this can damage trust and hinder open communication. Instead, she suggests helping children manage their emotions and consider alternative actions for the future.
To keep children engaged, financial lessons can be made fun and entertaining. Jamie Corum, a cybersecurity professional from Austin, Texas, integrates money lessons into daily activities. For instance, when grocery shopping, she sets a timer for her daughter to choose one item within a budget, including tax. When shopping for non-essentials like toys, she allows her daughter to use her allowance or money earned from chores.
Corum also uses a family personal finance app connected to debit cards for her children. This allows them to manage allowances, monitor spending, save, invest, and learn about personal finance through their own app portals. Popular family finance apps include Acorns Early, Greenlight, and BusyKid.