How to Raise a Money-Smart Kid
Updated: April 1, 2025
As adults, it’s natural to be focused on managing finances since we’re paying bills, putting food on the table, and filling up the gas tank. But how do we teach our kids to be money-smart? While we’re surrounded by blogs, videos, and financial resources to improve our own money management skills, our children have fewer tools at their disposal. Their main resources are us – parents, grandparents, and caregivers. The Fidelity Investments State of Wealth Mobility study found that 56% of people reported their parents never talked to them about money, while 81% expressed that they would have gained from financial education earlier in life.
At Launch, we believe it’s important to start teaching kids at a young age the value of money and how to manage it. We do this through our Minor Saving Accounts, our high school branches, and numerous youth financial education events. Launch wants all children to grow up money-smart, so we’ve rounded up some tips below on how to raise a money-smart kid.
Show Them It Costs Money
Teach your kids the value of money by highlighting prices when you’re shopping, watching TV, or at the grocery store. This simple practice can help them realize that nearly everything comes with a cost.
Start a Savings Account
This is a safe and secure way for your kids to watch their money grow. At Launch, we offer Minor Savings Accounts. With a Launch CU Minor Savings Account your child will start earning dividends regardless of his or her account balance.
Clear Jar Savings
This is a great strategy for young children. Clear jars are an affordable, simple, and effective way to visually demonstrate the concept of saving. Whether the money comes from an allowance, birthday gifts, chores, or even lost teeth, they’ll quickly see how their savings grow.
Incentivize Saving
It can be hard to say “no” when your kids ask for something. If there’s something they really want, use it as an opportunity to teach them how to save up for it. Whether with chores or their allowance, if they save their money it can be theirs in a little bit of time.
Donate to a Charity
Volunteer at a few different charities as a family. Next, ask your child to pick one to donate to regularly. Continue volunteering every so often so they can see their contribution at work. This is a real-life example of showcasing that not everyone is fortunate enough to have extra money.
Create a Basic Budget
This will teach your kids how to spend the money they earn. On a simple basis, you can help them separate their wants and needs. This could look like: a need = lunch money and a want = a toy. Bankaroo has a simple article on setting up a child’s budget.
We hope these simple tips help start your child’s journey to financial success. Let Launch CU help you start your child’s financial journey by setting up a minor savings account.
