6 steps to teaching kids smart money habits—from an expert and mom of 4

The most lasting and impactful gift you can give a child is financial education. From that foundation, they can pursue their dreams with confidence and security. Start with the concept of money. How do they earn it? How can they help it grow? How can they master it, so that money becomes a tool that helps them shape a life of freedom?

While I grew up comfortably, I had minimal financial education, so I know firsthand how it feels to set out into the world unprepared, and sink quickly into debt. Additionally, raising four kids during the pandemic – where there was so much economic uncertainty and no one’s job was guaranteed – drove home the importance of talking money early with my own kids. 

As Chief Education Officer at Acorns, a saving and investing app committed to making investing accessible to everyday Americans, I strive to put financial education at everyone’s fingertips—the younger the better.

Think of money as a language. If we speak it to our children from day one, they’ll be better able to understand it. They’ll have a command over it. They’ll even be able to use it as a tool. As a mom of four, that’s my goal. I want my children to see money as a tool, and the more skilled they are with it, the more useful it will be for them.

6 tips for talking to kids about smart money habits and financial wellness

Here are tips for simple ways we can educate our kids about money to help them earn, save and spend responsibly. 

1. Start early

Teaching our kids about good financial behaviors from a young age is key. Talk about needs vs. wants early on, and help them see that understanding money is not a chore—it’s a gift! It’s a path to financial freedom and choice.

2. Let them work

Kids love being trusted to lead a project, complete a task or help. Establish jobs that suit your family, and set a “salary.” Then, talk with them about saving, investing and spending. Is there something they want? Perfect! Help them earn and save for it. Then, help them understand spending vs. investing. Let them decide if they still really want that thing, or if they want to invest that hard-earned money instead.

3. Lean into their passions

If your child loves animals, see if they can help feed a neighbor’s pet, walk the dog or even cat-sit for a while for some extra cash. If your child loves to cook, host a bake sale or have them sell their goods to friends. This is a great way to teach kids that earning money can be fun and rewarding!

4. Encourage kids to turn their hobbies into money makers

Hobbies are a great way to make money. Data commissioned from GoHenry revealed that 4 in 10 (40%) young people have a part-time job of some description and an enterprising 6% have already started their own business. For example, encourage your kids to explore selling their art projects to turn their passion project into a side hustle.

5. Offer guidance for launching a small business

GoHenry-commissioned data also found that 25% of US kids and teenagers are already planning to start their own business. Amazing! Instead of discouraging them with the logistical hurdles and success odds, encourage them to embrace their entrepreneurial spirit. They’ll learn about lending, taxes and budgeting along the way.

6. Use your resources

As parents, we don’t have to have all the answers! Lean on financial literacy resources, such as the GoHenry by Acorns app, to help kids earn money, set savings goals, keep an eye on their budgets in real-time, and give spare change to charity. They’ll also learn core money skills through our Money Missions: in-app, expert-led, bite-size lessons, interactive quizzes and videos.

A note on talking to kids about money

We all want to do everything we can to set our kids up for success. Helping them establish smart money habits early is like removing barriers in their path. An early childhood financial education is truly the gift that keeps on giving.