Key Takeaways
- Everyday activities are opportunities to teach kids about money.
- Start young with simple lessons.
- Use digital tools to manage money and build financial skills.
Teaching kids how to handle money is a lifelong gift. Real-life situations — shopping, allowances, or saving for something special — make it easy to show them how money works.
Build Understanding
Make sure kids know what money is and where it comes from. Parents earn it by working, and kids can earn or receive it through allowances, chores, or gifts. Explain that money is exchanged for things we need and want, like food, housing, or toys.
Start Early
Introduce simple money lessons early:
- Teach coin and bill values when giving cash or allowances
- Encourage kids to split money into spend, save, and give categories
Practice Patience
Saving for something special teaches patience and the satisfaction of buying on their own. Along the way, kids can comparison shop, weigh brand vs. value, or even decide the purchase isn’t worth it.
Use Digital Tools
Digital tools can make learning about money more engaging. FamZoo,1 available in Lake City Bank Digital, combines a prepaid debit card with tools for managing, monitoring and learning about finances. Parents can:
- Automate deposits for allowances or chores
- Pay interest on savings2
- Monitor activity with alerts and spending limits
Spending Safely
With a FamZoo prepaid debit card, kids can spend safely while parents stay in control. Features include:
- Direct deposit and instant card-to-card transfers
- No overdraft or insufficient funds fees
- Secure EMV chip technology
- Support for Apple Pay®3 and other digital wallets
- MasterCard® Zero Liability Protection4
- FDIC insurance
For more ways to build financial literacy at every age, read our blog article Teach Kids Smart Money Habits with Real-life Lessons. You can also contact our One Call Center at (888) 522-2265 or visit your local Lake City Bank branch for resources.
1Terms and conditions apply to using FamZoo. Please read FamZoo’s terms of use agreement here. Please read FamZoo’s cardholder agreement here. 1Fees apply to FamZoo. Find more information here.
2FamZoo debit cards do not earn interest on any balance.
3Apple Pay is a trademark of Apple Inc., registered in the U.S. and other countries.
4Mastercard and the circles design are registered trademarks of Mastercard International Incorporated.
