Skip to main content

Teaching Children About Money


Financial education mandates have increased across the U.S. As of June 2022, 13 states require all students to take at least one semester of personal finance. In other states, personal finance is an elective or embedded within another course such as math, economics, or entrepreneurship. Financial education courses notwithstanding, children’s strongest financial influence is most likely their parents. Below are tips for Extension educators to share with parents interested in teaching their children about money:

  • Use Money Soundbites. Children can learn valuable personal finance concepts through the repetition of phrases that describe the importance of saving money. An example is Ben Franklin’s soundbite from more than 200 years ago: “A penny saved is a penny earned.” Follow this up by showing children a $100 bill, a.k.a., a “Benjamin.” Ben Franklin’s face is there for a reason! Other good soundbites include “pay yourself first,” “you can’t borrow your way out of debt,” “live below your means,” and “don’t spend money that you don’t have.”
  • Teach Budgeting Skills. Many parents teach their children how to budget with an allowance that effectively acts as a child’s “paycheck.” Parents should also provide guidelines to help children manage an allowance, including what it covers (e.g., discretionary clothing purchases) and does not (e.g., school lunches) and expectations for long-term savings (e.g., “from every dollar, save a dime”) and charitable gifting. Another key guideline is chores expected of kids as a “citizen-of-the-household” vs. those that earn extra cash.
  • Let Children Fail. Children commonly run out of money before their next allowance. One option is to let them “do without” for a period of time. Another is to loan them needed money with an agreed-upon repayment schedule and, perhaps, interest. Children learn valuable life lessons from money mistakes as well as successes. Parents can debrief these mistakes and help children improve future money management.
  • Leverage “Real Life” Experiences. Parents can use everyday activities, such as trips to the supermarket or a bank ATM deposit, to teach children about money. This may require real-time explanations about what is happening. Take the time. For example, tell children that a debit card purchase will be immediately subtracted from their checking account and that credit card companies will send a bill. Remember that children observe everything including shopping methods, tipping at restaurants, acts of charity, and bill-paying methods.
  • Foster Savings. Parents can help children open a savings account at a local bank or credit union and teach them about interest and compound interest. Another strategy that some parents use to motivate their children to save is to match a child’s savings like the government matches service members’ TSP deposits. The 52-Week Youth Money Challenge provides a template for children’s saving goals and parental matching. Another useful savings tool is a family savings jar to which everyone contributes loose change to save for a shared financial goal.

For additional information about children and money, review the CFPB website, Money as You Grow.

For additional content related to working with clients on personal financial issues, visit the OneOp Personal Finance Team. Free CEUs are available for AFCs and CPFCs through our webinars.

Written By:
Barbara O'Neill

Edited By:
Selena Garrison
Program Coordinator
OneOp Logo


Images (1)
  • OneOp Logo

Add Comment


About the Extension Foundation

The Extension Foundation was formed in 2006 by Extension Directors and Administrators. Today, the Foundation partners with Cooperative Extension through liaison roles and a formal plan of work with the Extension Committee on Organization and Policy (ECOP) to increase system capacity while providing programmatic services, and helping Extension programs scale and investigate new methods and models for implementing programs. The Foundation provides professional development to Cooperative Extension professionals and offers exclusive services to its members. In 2020 and 2021, the Extension Foundation has awarded 85% of its direct funding back to the Cooperative Extension System, 100% of funds are used to support Cooperative Extension initiatives. 

This technology is supported in part by New Technologies for Agriculture Extension grant no. 2020-41595-30123 from the USDA National Institute of Food and Agriculture and membership funding. Any opinions, findings, conclusions, or recommendations expressed in the content are those of the author(s) and do not necessarily reflect the view of the U.S. Department of Agriculture. For more information, please visit You can view the terms of useat

Link copied to your clipboard.