Do you want your children to get a head start on the fine points of handling their finances when they grow up? Fortunately, there are several excellent techniques for making that wish come true. Kids are naturally curious about money, finances, income, bills, credit, saving, and investing once they learn the basics. The vast majority of parents use weekly allowances as a way to teach youngsters about the value of regular work.

But few go beyond that point, and children often reach their teens knowing nothing about how to open bank accounts, save a portion of what they earn, invest in the stock market, or plan for major expenses like college. Allowances are the ideal place to begin, followed by discussing various money-related topics with children. Explain to them how to make financial plans, start their own savings and checking accounts, and more. Here are the pertinent subjects you should touch upon when you discuss money management with children.


The big lesson you teach with allowances is the connection of work to money. Even very young kids can understand the relationship between doing their weekly chores and receiving a small payment in return. Make sure they know what to do with the money once they begin to accumulate multiple payments throughout the year. Many parents use this opportunity to explain how to open bank accounts and keep money safe from theft, loss, or impulsive spending.

College Planning

For children older than 10, consider explaining the basic steps to making a long-term financial plan. Use college savings as an example. If you plan on sending your kids to college, this lesson can give them relevant information about what goes into building a strategy for paying college expenses. Show them how Earnest private parent student loans, as well as typical student loans,offer important benefits for moms and dads who want to make sure they can cover all the costs of an education. Private Parent Loans offer people in all income levels the chance to borrow responsibly and give their youngsters the chance to attend the college or university of their choice.

Happy mixed race students gathered in classroom, looking at camera.

Bank Accounts

The time will come when youngsters need a place to store their funds. Walk them through the entire process of opening checking and savings accounts. Teach them how banking works, why adults use banks for safeguarding larger sums, and how banks operate. The ideal time for this lesson is in the pre-teen years when children are beginning to take on part-time jobs and buy a few things of their own.


Make it a point to explain simple ways to save money, like the importance of saving a fixed amount from all income. It’s surprising how much information kids can absorb when you relate the lesson to their personal situations. Show them how to calculate a realistic percentage of income, say five percent, as a routine savings amount.


For older kids in their early teens, explain how the securities markets work and why people are willing to put a portion of their savings at risk. You can open a custodial brokerage account for youngsters and demonstrate how to choose blue-chip stocks for long-term wealth accumulation.