Key Takeaways

• • • • • • • • No matter how old your child is, you can help them build good money habits.
              • Teaching kids about money is more meaningful when you use real-life situations, like grocery shopping
                
              • Understanding the difference between wants and needs is important at every age.
              • Talking about the family budget can help kids learn about saving and spending.

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    Teaching your children about financial success is like the old saying: “Give someone a fish, and they eat for a day, but teach them to fish, and they eat for a lifetime.” By building their financial literacy early, you’re equipping them with the skills to make smart money choices for life. Read on for age-appropriate tips.

    Ages 3-7: Learning the Basics

    At this age, kids start learning to plan, finish what they start, and even wait for what they want—all concepts that fit well with learning about money. Introduce setting goals, saving and budgeting while you’re engaging in daily activities.

    • Even preschoolers can learn about what a dollar can buy. At the grocery store, explain how you choose between different brands, prices, and how much you need before your next trip. As kids get older, let them help make choices.
    • Teach them the difference between a “want” and a “need” when picking out a treat. Let them decide how to spend a small amount of money.
    • When you get home, look at the receipt or change together to talk about how much things cost.
    • If your child receives money as a gift, help them decide what to save and what to spend. This is a great time to open a savings account for them

    Ages 8-12: Making Choices

    Money lessons get more complex now, and kids can participate more directly in decisions about their own money and the family budget. Giving them an allowance is a great way to teach smart money habits.

    • Encourage kids to divide their money into three categories: spending, saving, and giving. Saving toward a goal helps illustrate that concept for your child.
    • Take them to the bank to deposit and withdraw money and review the statement or online account activity.
    • Let them help with grocery shopping by making a list, looking for sales, and staying within a budget.
    • Teach comparison shopping by showing them how to find the best price on something they want. They can decide if they want to buy a cheaper brand or save for the one they prefer.
    • Explain how different payment methods work. Whether you use cash, a debit card, or a credit card, it all comes from the same budget.

    A family finance app like FamZoo¹, available through Lake City Bank Digital, can help kids learn about money. It works like a family bank, with prepaid debit cards and financial education lessons built in.

    Ages 13-18: Preparing for the Future

    The teen years bring independence, even with money. Help them build strong money habits with these tips:

    • Encourage teens to set SMART goals—Specific, Measurable, Attainable, Relevant, and Time-bound. For example, if they want to buy a car, help them break down the full cost beyond the purchase price, including gas, insurance, repairs, and maintenance. While saving can help them afford the car and initial expenses, they’ll also need a steady income to cover ongoing costs and potential loan payments.
    • Talk about their future plans. What kind of job do they want? How much money will they need to live the way they want? Discuss saving for college or other training after high school.
    • Your teen can probably handle more independence with their bank account. Try an account like StartSmart from Lake City Bank,² which is designed to be your child’s first bank account. StartSmart includes access to Lake City Bank Digital, a debit card with sensible daily limits, no monthly maintenance or NSF fees (until age 24), and access to Goals,³ a digital savings coach.
    • Review your family’s budget with them. Show them how you save, spend, and use credit responsibly.
    • Teach them about credit scores, how credit works, and the cost of borrowing money.
    • Managing money and earning it go together. Discuss getting a job and help your child start working.

    Start Today

    The best way to teach kids about money is to include them in everyday financial decisions. These lessons will help them grow into financially responsible adults—and you might even pick up a few new money habits along the way!

     

    ¹Terms and conditions apply to using FamZoo. Please read FamZoo’s terms of use agreement here. Please read FamZoo’s cardholder agreement here. Additional fees may apply. Please read FamZoo’s fee disclosure here.

    ²See Personal Account Terms and Conditions, StartSmart Administrative Charges disclosure and the StartSmart product disclosure for details or call our One Call Center at (888) 522-2265. 

    ³Goals, as referred to herein, constitute the Goals Account described in Section E Investment Accounts of the Personal Account Terms and Conditions.