Teaching Kids About Money:  A Guide for Partents Part 1

by | Sep 12, 2025 | Craft Wealth

Welcome to the LifeCrafter Money Sense blog! Today, we’re kicking off a three-part series for parents on teaching kids essential money skills, from elementary school through college.

Teaching children about money is one of the most essential life lessons you can provide. By starting early and adjusting your approach as they grow, you can equip them with the skills they need for a financially secure future. This guide breaks down age-appropriate strategies and tools to help you raise money-smart kids.

Part 1: Ages 7-10: The Foundation

At this age, children are ready to learn fundamental money concepts through hands-on activities. They understand basic math and can grasp the idea of earning, saving, and spending.

  • Introduce an Allowance and Chores: Link an allowance to specific chores. This teaches them that money is earned through work, not just given. Start with a small, manageable amount and have them be responsible for small expenses, like a toy or a movie ticket. This helps them connect work to reward and the concept of delayed gratification. To expand on this, you can create a chore chart with a clear payment structure in place. For example, simple tasks like making their bed or tidying their room could earn a small amount. In contrast, more substantial tasks like helping with yard work or washing the car could earn a greater amount. This reinforces the idea that more effort can lead to more earnings.
  • Use the Three-Jar System: A simple, visual tool is a great way to introduce budgeting. Use three clear jars labeled “Spend,” “Save,” and “Give.”
    • Spend: For small, immediate purchases like candy or a comic book. You can set a rule that once the “spend” jar is empty, they can’t buy anything else until the next allowance.
    • Save: For a larger, long-term goal they’ve chosen, like a new video game or a special toy. This teaches them to save up for something they really want. To make it more engaging, you could match a portion of what they save, introducing them to the concept of earning interest.
    • Give: For charitable contributions. This instills the value of generosity and helping others. You can help them research a cause they care about, like an animal shelter or a local food bank, and then let them decide where to donate their money.
  • Make Shopping a Learning Experience: Involve your children in grocery shopping. Ask them to compare prices, look for sales, and help you stick to a budget for a specific item. This makes them aware of the cost of goods and the value of a dollar. Please give them a small budget and a list of specific items to find. For example, tell them they have $5 to buy a box of cereal, and challenge them to find the best deal.

Open a Savings Account: Once your child has a little money saved up, take them to a bank to open a youth savings account. Let them make the deposit themselves. This introduces them to the banking system and the concept of their money being safe and earning interest over time. To make this a more concrete lesson, show them their bank statement each month and point out the interest they’ve earned. This makes the concept of money working for them feel very real.

Please join us next week for Part 2 of our series, where we’ll discuss financial lessons and skills for teenagers ages 13-17.

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Larry Marvin

LifeCrafter Money $ense

Source

LifeCrafter.org. (2025). Gemini. https://gemini.google.com/app/f84041c46c538967

Larry Marvin
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