In honor of Financial Planning Month, here are a few tips and tricks from Summit Credit Union to help your kids build confidence with money from an early age.
Teaching Kids About Money Doesn't Have to Be Complicated
As parents and caregivers, we teach our children countless life skills. We help them learn to tie their shoes, ride a bike, treat others with kindness and tackle new challenges with confidence. Yet when it comes to money, some might think that they don’t know how to pass along positive habits or teach their kids about finances.
The good news? You don't need to be an expert to help your child build money skills. In fact, some of the most meaningful lessons happen during everyday moments and conversations.
A Common Misconception: You Need to Know Everything
One of the biggest misconceptions about teaching kids money skills is that parents need to have all the answers. In reality, children benefit most from learning how to ask questions, weigh options, make decisions and then reflecting on their money choices.
Another common myth is that learning about money requires special programs or formal lessons. Long before children earn their first official paycheck, they're forming ideas about money by watching the adults in their lives. They observe spending decisions, hear conversations about financial choices and notice how adults navigate everyday situations. These small moments help shape their understanding of saving, spending, planning and goal setting.
One simple way to support learning is to think out loud. During a grocery trip, for example, you might explain why you chose one item over another or how you decide whether something is worth the cost. Conversations like these help children see the decision-making process behind money choices.
Whether your child is deciding how to use birthday money, saving for something important to them or comparing options before making a purchase, each experience helps strengthen their financial decision-making skills. These actions help children develop confidence and learn how to make thoughtful decisions over time.
Simple Tools Can Build Lifelong Habits
One helpful approach is the "Save, Spend, Give" method. Using separate jars, envelopes or accounts can help children understand that money can serve different purposes.
Some money can be used today, some can be saved for future goals, and some can be used to support causes or people they care about.
Other ways to build money skills include:
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Setting a savings goal and tracking progress
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Practicing counting money and making purchases
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Earning money through age-appropriate responsibilities
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Opening a savings account and making regular deposits
These activities help children develop skills like planning, patience, responsibility and confidence that can support them throughout life.
Three Ideas to Try in the Next 30 Days
If you're wondering where to start, choose one of these simple actions:
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Have a five-minute money conversation shopping and explain one choice you're making.
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Help your child choose a savings goal and create a simple way to track progress.
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Use a Save, Spend, Give system to help your child think about different ways money can be used.
Small, consistent actions often create the biggest learning opportunities.
Looking for More Resources?
Learn additional ideas to support your child, develop positive money skills, confidence and decision-making habits at SummitCreditUnion.com. Check out the free, on demand Teach Your Kids About Money webinar, along with practical tools and checklists families can use at home.