By Laurie Gable/WaFd Bank Mesquite Branch Manager

Teaching kids, grandkids, nieces or nephews, or even your friend’s children

Laurie Gable

the importance of money is the best way to set them up for success financially as they get older. The best way to make sure our youth learn the value of money is to educate them when they are young. Kids need to understand that money is not limitless and everything costs something. 

It might be surprising, but children can grasp basic money concepts by the time they’re three years old. It’s important to begin your child’s money education early so they can develop and keep good habits and be ready to enter the real world as adults. They say practice makes perfect, and that’s also true when it comes to learning about how to manage money.

Seven ways to teach your child good money habits

  • Spend: Teaching doesn’t have to happen in the classroom. Consider starting with grocery shopping and compare the things you need with what you plan to spend. The goal in this case is to get them used to thinking about a budget and considering the cost of each item when making decisions on what to buy.
  • Save: The general rule of thumb is to save at least 10% of your income, but even small amounts add up over time. At this age, getting into the habit of saving at least something is the goal! Even $10 a month will add up to $120 in a year (even more with interest if they keep it in a savings account).
  • Make it fun: Talking about money can be tough, but it doesn’t have to be. When money is managed well, it can lead to independence, homeownership, and having the lifestyle they want rather than the one they have to live. It’s important to make sure they know about pitfalls, but the main thing is to get them excited about what’s possible.
  • Keep the conversation going: Starting with the basics is necessary, but as the kids in your life grow, so should conversations about money. When they get their first job, take the time to discuss retirement and investment options so they can set themselves up for success. Remember, you don’t need to be the expert on everything.
  • Play games: Think of the classics like Monopoly or Life, or if they’re a bit younger use pretend play to introduce earning, saving, and spending concepts at a make believe store or restraint and pay for services like a check up for their stuffed animals and other toys.
  • Turn a grocery store visit into a lesson: There’s nothing like hands-on experience! Let your helping hands know how much money you have to spend on groceries and share your itemized list with them. Ask your kids to help you total up the cost of the items as you place them in your cart.
  • Set a budget together: This doesn’t have to be anything complicated—maybe they earn $5 a week for their allowance. What can they budget for themselves to spend every week and what will they set aside to save up for something bigger? You can also go over your own household budget when you get paid so they can get a real life lesson in money management. This is a great learning opportunity for the older kids in your life!

Laurie Gable is a vice president and branch manager for WaFd Bank in Mesquite.