Let’s Talk About Money, Lil’ Honey

Teaching your kids about money now can help them be proactive about their own financial futures. And with a few simple steps, you can turn your little one into a big saver.

Learn to earn 

Kids learn early that money is either earned or handed to them. Instilling a money-is-earned work ethic can never begin too young.

Start with a small task or an age appropriate chore chart which must be completed before an allowance is given. Have them stash their cash in a clear piggy bank or a canning jar where they can see their money grow.

Saving for now and then

Talk to your kids about saving for the things they want and the things they need, even if those things are far away.

College tuition, a vehicle and insurance and a nest egg are future “musts” your kids likely can’t understand while they are young.

Help them set up a savings account for the things they want now, like a new Nintendo DS, and that’ll help them develop good saving habits for things farther away like college.


Make finance fun

Kids of all ages might need a little reward (besides the savings!) to motivate them into saving cash. Check your local bank or credit union to see if they offer a rewards program for kids who save consistently or reach monetary goals.

How do you teach your kids about money?

{Top Photo Credit}


Heather Allard

Heather Allard is a mom of three kids + one big rescue dog. She's a wellness buff, an essential oil educator with dōTERRA, and a self-professed “entrepreneur to the core”.

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  1. Nicole

    We’ve just begun to give out cash allowances to our three older children (11, 8, and 6). I’m intrigued by the “virtual approach” as I rarely carry cash to hand out!

  2. Rachel Blaufeld

    My boys have bank accounts, but the virtual approach may be better — hmmm…

    • Heather Allard

      Maybe a two-pronged approach – virtual and “real-world”?

  3. Rachel Assuncao

    Little J, age 4, is beginning to learn about money. She understands that money is what lets us buy the things we need and want, and now we’re working on associating value with money.

    One of the things I’ve been really conscious about is using cash when we’re shopping together. Real, tangible cash, rather than the magic of plastic, so that she can have the experience of giving cash and getting her product, and also see that money is something that has limits – when it’s all gone, we can’t buy any more until we have more money again.

    I really wrestle with the idea of teaching her that she has to work hard to earn money. As a business woman, one of my biggest struggles has been learning that I don’t actually need to trade my time for dollars. I can create products, like cookbooks and guide books, that can earn me money while I do other things. I can use the power of video to get my messages across to hundreds and thousands of people, rather than repeating the same thing over and over again individually. I can do so many things that free up my time, but still give me great income. So, how do I teach my daughter that she must trade her time for dollars, while at the same time I’m doing my best to overcome a lifetime of that belief?

    I don’t yet have answers, but am looking for a new and creative way of modelling that money has value, that an energy exchange must happen, and that you don’t have to work hard or have an hourly salary to be able to receive it.

    • Heather Allard

      Love your idea of using cash when you’re paying for things. I do that with my daughters, too – I have them take the cash out of their wallets and give it to the cashier, then put the change (if there is any) back in their wallet. I find this really makes them think hard about whether or not they like/love something enough to part with their money for it. It makes a huge difference when *they’re* paying for it. Lol.

      I understand your struggle with what to teach your daughter about earning money – I’ve traded time for dollars and I’ve earned money through info products, too. I don’t think trading time for dollars is always a bad thing – there are many very well-compensated moms out there – lawyers, doctors, consultants, etc. I think it’s a matter of teaching our kids to use their talents to do work they love and to always make sure they are compensated well. 🙂

  4. Carley Knobloch

    I figured out my kids were always with me (online or off) when they wanted to make a purchase, and so what I needed was a VIRTUAL way to keep track of their allowance/funds they had to spend. So I found iAllowance and it’s the BEST app for teaching money lessons. Every week it “deposits” their allowance into 3 “accounts”: 50% into spending, 25% into savings, and 25% into charity. Now all we have to do is glance at the app when we’re at the toy store to see if they can afford what they want. I put it on my credit card and make a “withdrawal” from iAllowance. They totally get it and it doesn’t involve me carrying around extra cards and such. LOVE it.

    • Heather Allard

      That sounds awesome, Carley! Thanks for sharing! 🙂

  5. Cydney

    Great resources and post. Thanks!

  6. Anne Samoilov

    omg about ING…we have an account there but I never knew about children’s account. I will definitely be checking this out for Mila. Great post!

    • Heather Allard

      I know! I opened a MONEY account for Hope and a kids’ savings account for Grace and Brendan. Hope loves having her own debit card. 🙂


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