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What And How To Teach Kids About Financial Responsibility

What And How To Teach Kids About Financial Responsibility

Teaching kids about financial responsibility

It is never too early to start teaching kids about money. As most of us, around the globe, is going through some financial troubles due to Covid19, it becomes all the more important to prepare our kids for any such crisis. Teaching kids at a younger age about financial responsibility helps in cultivating a sense of ownership in children.

Taking baby steps towards this when they are young, will help ensure that our kids grow up financially savvy and responsible. Being from a household, where discussing finance with young kids was felt simply overwhelming or inappropriate, I understand the mindset however later on during my adulthood I realized how important it is.

What Is Financial Responsibility When It Comes To Kids?

It refers to the process of managing money and other similar assets in a way that is considered productive and is also in the best interest of the individual, or the family, or the business company.

We would never ask our children to start driving once they are of the right age without proper training or practice well, financial responsibility is a life skill too and once needs proper training for this.

How To Teach Our Kids About Finance?
  • Set a good example

As with so many things, what we do matters. Our financial behavior will set an example for the kids. The practice of teaching the importance of the value of money begins at home. Always put purchases into context and do not forget to emphasize that material goods are not what make people happy.

  • Games that involve money and saving

We all have grown up playing monopoly and it is definitely a fun way for kids to learn about money. Let them pick their favorite piggy bank or wallet and make them understand the importance of money. Make sure that your child has a safe place to keep their money.

  • Do not make Money an Off-limit topic

Discuss the cost of our day to day use of things like groceries, snacks, or clothes to make them understand how it works. We don’t want to burden the kids, make them feel responsible, and give them a real-world sense of these transactions sometimes.

  • Establish good habits

How about implementing a routine for kids to understand their importance. Use money as a motivation to help the kids grasp the basic concepts by having them earn their money through weekly allowance, and then share, save, and even invest a small portion each week

  • Teach them restraint

We might want to give our kids everything they ask for, but doing so could have negative consequences. A young adult unaccustomed to hearing “no,” might find it especially difficult to exercise control over money.

Teaching kids about money must be a part of regular household routines, for example, going to the grocery store. Tell your child what your budget is and make a game of buying what you need under that set amount. A small initiative can bring major changes in their understanding of money in the long run.

Managing our finances during these tough times can be a daunting task however, someone guiding us through can make a lot of difference.

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Mom of a beautiful and most adorable baby girl. I am a dreamer and a true optimist with a drop of crazy at heart. I have always been fascinated with the perpetual link of a pen and a heart. It amazes me how beautifully pen can write what heart truly believes. I am a stubborn daughter, pampered wife, doting mother and free-spirited human being. Do not forget to visit and

Reader Comments

  1. love the topic its a high time for children to learn financial responsibility in this era due to so many factor and the way we are living where we mostly spend on liabilities and showing off

  2. Hi Kavita, Your article came is at the right time. I was actually thinking on the same lines from the past few days. With the current distress in the businesses and the job market, it’s very important to teach our kids the importance of saving and investments. Thanks for this. Your article is a great help.

  3. Your suggestions are so helpful. It’s our responsibility to teach our kids the importance of saving money and all about finance.

  4. Managing your finances properly is the very first task when it comes to financial literacy. And for this, stating early is the best bet. Hence it is never too early to inculcate the habit of savings in kids!

  5. Yes actually it is important for kids to value money and the way it is earnt after hardwork. We too play business with our kiddo and he has a piggy bank too..

  6. I love the example about driving and training – so apt! I agree learning about money is an essential life skill, and any resource and tool that can help with that is most welcome! I saw the link for Dune Ventures – seems like a super easy way to consolidate and move towards financial freedom.
    Ishieta recently posted…Zee5 Kehne ko Humsafar Hai S3My Profile

  7. My parents inculcated this in me when I was quite young. You have really mentioned very practical suggestions that parents can adopt and help their child in understanding and making them financially independent.

  8. Deeply appreciate you chose to write on this topic buddy. I have always taken care to teach it to my son from a very young age

  9. A lot of us are thinking COVID-Pandemic has taught us the value of money, but I feel with me, the process of teaching the value of certain virtues including finances has been there, always- ALWAYS! Thanks for this read. It only re-affirms my belief in the fact that we are on the right track!

  10. This is such an important aspect of parenting that we often forget or ignore. Loved all the tips and as per my view, setting an example and be a role model is most important.

    1. My son is almost 12 and has been joining me for grocery shopping since he was 7-8. He understands discounts, compares brands and makes sure we don’t pay extra. Financial responsibility is indeed a life skill.

  11. It is never too late to teach kids the basics of financial responsibility. Today, kids see us swiping cards and getting things. This gives them an impression is making a purchase is very easy but to make them understand that a lot of hard work goes behind earning that money which allows them to have the comfort and the things they want is also important.

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