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How to Teach Your Kids About Money

How to Teach Your Kids About Money

May 19, 2023

As the saying goes, “Money doesn’t grow on trees,” and it’s never too early to start teaching your kids about the importance of financial responsibility. By instilling good money habits in your children from a young age, you can help set them up for a successful financial future. From budgeting, saving, and investing to giving back to causes we care about, there are countless ways to teach your kids about money management. 

So, where do you start? Read on for 3 tips to help your kids move toward a bright financial future.

1. Be an Example

If you want your kids to grasp the importance of handling money wisely, let them watch you make financial decisions and model what you want them to learn

The number-one money habit children learn from their parents is spending habits—good or bad. If you spend money recklessly, your kids will see that. If you rely on credit cards to cover expenses or argue with your spouse about finances, they’ll accept that behavior as the norm. Your actions set a precedent, so be intentional about how you model money management to your kids and let their watchful eyes be a motivator to change any negative financial habits.

2. Start the Conversation

Since many areas of personal finance aren’t visible, sometimes a silent model isn’t enough. That’s why it’s vital to start the conversation now. Talking to your kids about money regularly leads to kids who are more financially literate. It doesn’t have to be a long drawn-out discussion. Just let them in on your thinking and decision making as you go about your day-to-day life. At the grocery store, explain why you buy the off-brand cereal; at the bank, explain why the bankkeeps your money and why you only take what you need from the ATM. These real-world scenarios help cement the whys and hows of money in your child’s mind. 

3. Give Them Opportunities

For financial understanding to truly sink in, kids need to experience their own successes and failures. On a practical level, give your 5-year-old money to buy something at the store so they learn the value of different items and realize that, to obtain something like a toy, an exchange of money needs to take place. Try letting your 10-year-old figure out the cost of a new video game, plus tax, and help them save up allowance money to pay for it. Let your teenager buy their back-to-school clothes with a set amount of money. 

Seeking out financial literacy classes in your area or online is another great way to introduce the topic of money management to your children. As they get older, you may even choose to guide them in investing some of their hard-earned money, letting them make some of the decisions. It may seem a little scary at first, but we all learn best by doing, so allowing your kids to make mistakes can teach them valuable life-long lessons.  

We’re Here for Support

As a parent, you want nothing but the best for your children. Whether it's planning for their college education or simply teaching them about the value of money through an allowance system, you may find yourself wondering if you’re doing enough to set them up for financial success. With so many resources available, it can be overwhelming to know where to start.

At Center for Wealth Management, we understand the importance of financial education for children and families. Let us be your go-to resource for practical and effective guidance that helps you and your children gain confidence in their financial future. Our team is here to assist you in creating a customized plan that aligns with your family’s unique needs and goals.

We invite you to call (248) 220-4321 or email You can also schedule a meeting by visiting Together, we can help empower your children with the knowledge and resources they need to thrive financially.

About Rob

Robert Moore is senior partner, financial planner, investment advisor, and co-owner of Center for Wealth Management, an independent, fee-based wealth management company based in Troy, MI. With more than 15 years of experience, Rob provides customized advice and solutions that are in the clients’ best interest. He strives to always go above and beyond his clients’ expectations, helping them retire with more security than they had before, and invest their time and energy in what’s most important to them. Rob specializes in working with DTE Energy employees, helping them maximize their benefits so they can reduce taxes, prepare for retirement, and protect their families through a comprehensive planning process. Rob graduated from Michigan State University and holds the CERTIFIED FINANCIAL PLANNER™ and Chartered Financial Consultant® (ChFC®) certifications.

Rob is known as a diehard family man who enjoys spending time with his beautiful wife, Jill, his daughter, Brookelyn, and his son, Brayden. When he’s not working, you can find him playing basketball once a week, squeezing in a round of golf, and watching college football and basketball with friends and family. He is passionate about enriching the lives of others through his church involvement and service at a community addiction program. Learn more about Rob by connecting with him on LinkedIn