How did you learn about money?
Most adults say they learned about money the “hard way,” with more than 70% saying they would be better off today if they had learned some money basics at an earlier age.1
Kids today face an even greater challenge than previous generations when it comes to money management. They have to learn how to filter out the noise from social media influencers who can pass along questionable guidance—like the concept of “diamond hands.”
So, here are some tips and ideas for instilling healthy money habits. The goal should be to make money fun while showing kids how to harness its power.2
“Whoever can be trusted with very little can also be trusted with much, and whoever is dishonest with very little will also be dishonest with much.” Luke 16:10
When Kids Are Little
Connect Money to Work. A chore chart, for example, can be a powerful motivator for a young child. Finishing what you started can begin to lay the foundation for a strong work ethic.
Create a Family Financial Time Capsule. Have kids talk about what they want to buy in six months or a year and place it in a time capsule. When you open the time capsule later, your kids will see first hand whether their goals have changed.
As Kids Move Through Teenage Years
Encourage a Summer Job. If you expect your kids to work, this can help you start to set boundaries. For example, it’s perfectly reasonable to expect kids to pay for gasoline in the car they drive, or to pay for a movie with friends.
Start a Bank Account. Help your kids start a relationship with a bank or a credit union. In a few years, when they may start to show interest in a credit card, having a banking relationship can help.
College Costs. The cost of college may start to become part of the conversation. If you’ve already set money boundaries earlier, discussing a college budget may be easier.
Pro Tip: Consider starting a book club with your teenager. Offer a cash bonus for completing a book. There are plenty of short and longer books available.
When Kids Become Young Adults
“Adulting” Becomes a Reality. Adulting is a term often used by Millennials and Gen Z’ers to describe the acts and behaviors involved in being a responsible adult, such as paying bills, doing laundry, and cooking. You can add budgeting to the list. It’s a great time to introduce the concepts of fixed expenses vs. discretionary spending.
Invest in Interests: It’s difficult, if not impossible, to tell a young adult to invest for retirement, which can be 40+ years in the future. Another approach is to encourage them to start investing in companies or ideas they are passionate about.
Who to Trust. If kids have a question about money, encourage them to turn to trusted sources for financial help. Help them start to distinguish between real trusted professionals and media influencers, who may not have their best interests in mind.
- AmericanBankersAssociation.com, April 17, 2025
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Schwab.com, February 13, 2026
