If you’re a Dad who wants his kid to do well in life, then one of the best things you can do is to start teaching your kids about money. The sooner, the better. Children who learn smart earning, saving, and spending habits early on positively impact their financial futures.

Skills to earn income, save, invest, and spend money can be taught at a very young age. Understanding the difference between needs and wants, grasping the concept of how savings grow, and grasping how debt can negatively impact one’s life are all entirely possible for children to learn.

These concepts are not often taught in most schools, and while I think they should be, I think it is more important that dads take the lead in teaching your kids about handling finances. Because frankly, who cares more about your child’s money than you and them anyway?

Ways to Teach Financial Basics


I did not give my children an allowance, but in hindsight, I wish I did. Having them ‘earn’ an income is a great way to teach the ins and outs of earning, saving, spending, and even donating. As children are faced with situations such as wanting a toy or piece of clothing that isn’t in the family budget, they can be taught the difference between needs and wants. You can be teaching your child patience as well by showing them how to save for a desired purchase that is not in the family budget.


Grocery or back-to-school shopping trips can be great teaching opportunities. Start by preparing a list of needs before hitting the store. Show your child how to compare prices, take advantage of things that are on sale, or buy in bulk to save additional money.

Explain how the brands they may see advertised on television are not always the best value option. If they ask for items that are not on the list explain that those things are not necessary and be willing to say no. Alternatively, you can use those times for teaching your child they can pay for their wants out of their savings.


Open a savings account with your child and if they are of working age assist them in opening a checking account. Owning and maintaining savings accounts can children learn about interest, how to deposit and withdraw money, and depending on their age, properly use debit cards.


Does your kid show an entrepreneurial spirit? Help them start a small business. A lemonade stand, lawn mowing, snow shoveling, or babysitting services are all reasonably easy options for teaching your kids about money. This is an excellent way for them to learn financial skills. Also, they can learn how to set and achieve goals, what profit and loss are, how pricing effects profits, and more importantly how hard and honest work can be rewarded. A small business can also instill confidence and necessary people skills.

Hacks for Teaching Your Kids About Money

  1. Use clear jars to accumulate money for saving, spending, and donating so that your child can visual see the money. As they earn money or are gifted money, teach them to split the money between the different jars, based on agreed upon designations. Such as 25% for long-term savings they can’t touch, 25% for short-term savings, 10% for donations, and 40% for spending on their wants.
  2. Have them count their money and record in a notebook or on the computer, each time they add money to their jars or take money out. Putting down notes as to where the money came from or how it was spent or donated is a good habit for them to create. You’ll be teaching your kids about money, and about record keeping.
  3. Assist your child in setting goals for their money. If they want a toy that will take four weeks of allowance to pay for or their first car, which may take them four years, help them create a savings chart to track it. This can be done with a simple piece of paper and crayons for young children or an Excel spreadsheet for an older child.
  4. Physically show them how money works. Instead of using your credit card online or at the store teach them how to use cash. Go through the motions with their own money when they want a toy by having them grab a few dollars out of spending jar and taking it to the store to physically purchase an item.
  5. Explain the concept of opportunity cost. If you buy this book with your money, you won’t be able to buy that toy too.
  6. Find opportunities for teaching your child the importance of giving and lead by example. Even with just a little bit of money, they can learn about giving. Have your child pick a charity, a cause, your church, or even someone they know who could use a little help. Eventually, they’ll understand giving doesn’t just positively affect the charitable causes they give to, but also the giver as well.
  7. Describe how compounding interest works – Interest is earned on the original amount of money saved, as well as on any interest already earned. Here’s a fun calculator for them to try.
  8. Educate them about credit and the danger of credit cards. Stress the importance of using credit responsibly and paying off credit cards in full each month. Credit card debt is costly and can quickly ruin one’s life. Don’t let them learn this the hard way.

Financial Technology and Money Apps for Teaching Your Kids

As your child ages, you’ll likely want to introduce them to more technology-based financial education. This may aid you in teaching them necessary to understand concepts mentioned above. Here are a few highly rated fin-tech products you may want to check out when you and your child are ready.


FamZoo, encompasses many areas of teaching kids about money, including spending, saving and giving. Their technology allows you to utilize prepaid cards or a simple IOU system instead, to provide allowances to your kids. It’s entirely customizable, goal-based, simple to use and in addition to allowance tracking, FamZoo also allows you to:

  • Assign payments for chores
  • Set up savings buckets to pay your kids a specified interest rate (compounding interest!)
  • Establish separate logins for your child to give them responsibility for tracking their money.

FamZoo offers lots of features for a variety of ages making it an awesome program that grows with your kids.


Started in 2011, Bankaroo is the idea of an 11-year old daughter and her father who helped her bring it to life. It is a virtual bank designed for kids, ages 5 to 14. It teaches the value of money in a fun and straightforward way. Create checking, savings, and charity accounts for your kids to track their allowance, gift, or chore money. Kids can also create savings goals and earn cool badges.

Bankaroo has mobile apps in both English and Spanish and offers financial curriculum programs for schools too.


Aimed at kids, ages 6 to 8, PiggyBot offers an easy way to track allowance spending and saving. Instead of cash, your kids have a virtual balance, like an IOU with you. Each child has a separate Spend-It, Share-It, and Save-It account and you decide how to allocate the allowance.

Kids can set goals, take pictures of things they want and share money. There’s also an option to show off the items they purchased. The system is designed to reinforce principles of saving for wants, needs, and nice-to-haves.

One of the most important things you can do as a parent is to communicate with your child early and often on how to earn, save, and spend. There are many ways, tools, and technology available for teaching your kids about money. Offer several examples to them of how money is earned and provide your child the opportunity to help decide how it is budgeted for saving, spending, and sharing. Also, please educate your children about the dangers of spending above their means, overusing credit cards, being in debt, and paying high-interest loan rates.

Additional Resource:

Money Confident Kids

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