Teaching Your Young Child to Be Money Conscious

money in kids' hands

It is best to start early when it comes to teaching your child to be money conscious.

Set a price limit when buying something for your child and let your child pick out an item in that range.

Teaching them about money while they are young will undoubtedly help them make better decisions as they get older. Here is some advice to help you teach your child this valuable lesson:

  • Lead by example. Your child learns from everything you do. It can be confusing to your child if you are teaching them to be money conscious, but you spend money at the drop of a hat. This doesn’t mean you can’t indulge every once in a while, if you have the means, but maybe it would be best to do this when your child is not around.

  • Give your child an allowance for completing designated chores. For young children, the tasks can be as simple as picking up their toys.

  • Limit the frequency of buying something for your child, such as limiting them to one new toy a month. Explain why you can’t buy your child everything they want. This will help your child understand your actions.

  • Set a price limit when buying something for your child and let your child pick out an item in that range. For example, tell them they can pick out a toy, but it needs to be under $15. As your child points out toys in the toy aisle that they like, let them know if it is in the price range you have set.

  • Open a savings account for your child and teach them about the benefits of saving money.

    { MORE: Plan Now to Give Your Kids the Best Holidays Ever Without Going into Holiday Debt }

Start teaching your child these good habits today. Your child will be thankful for these valuable lessons someday.

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Teaching Your Young Child to Be Money Conscious

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19 comments

  1. Profile photo of EbyMom EbyMom says:

    Interesting tips on saving money and also teaching ur kids how to be economical in spending. I love the article and will definitely come handy.thnx edf

  2. Profile photo of Sidrah Sidrah says:

    I am going to save these tips for the future!

  3. Profile photo of PrettyBoogs PrettyBoogs says:

    I can only hope that I can plant some of these wonderful ideas in her head. But I will try my very hardest to set a good example

  4. Profile photo of Janice Janice says:

    The how and why of money lessons in this article is a value in it self.

  5. I can’t wait to teach my boy to be a penny pincher like me! These are good ideas, too.

  6. Profile photo of Dina Dina says:

    This is defenatly good ideas

  7. Profile photo of Melody Melody says:

    My parents were really good at this! They even helped us find entertainment/play options that were free of charge. I want to be able to teach my children good money management. It’s so important!

  8. Great info. Started my daughters MI529 college savings this past weekend.

  9. Profile photo of alisha alisha says:

    Good tips… My daughter is four and I get so frustrated bc we cant walk in a store without her saying I want a toy. This would be her daddys fault he belives she can get a lil something everytime. He is good about finding $1 items or a lil more that she likes but probably not best teaching method

  10. Profile photo of ErinF ErinF says:

    Great tips. I think it’s a great idea to start building these skills from the beginning.

  11. Profile photo of sinda sinda says:

    I think this is great. I have tried to teach my stepchildren how to save and now I am going to teach my own kids. My dad taught me and it is nice knowing how to save in the end.

  12. Profile photo of Brittney Brittney says:

    Awesome tips, my little one is still to young for this but it’s great to have in the back of my mind when he gets a little older.

  13. Profile photo of meredith meredith says:

    So important, thanks for the tips!

  14. Profile photo of Leeana Leeana says:

    I have savings for my son and teach him about saving. Also show him how to shop smart & use COUPONS!

  15. Profile photo of Anna Jones Anna Jones says:

    I have a savings account for my 7 month old and once he is old enough will be teaching him about saving and spending.

  16. I really wish my parents would have done this for me. I plan to start this as soon as my child is born.

  17. i have alredy started my 5 yr old on an allownce and hes learning fast how to manage his money

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