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7 Key Financial Values Every Child Should Learn

As a parent, one of the most valuable lessons you can teach your children is how to handle money wisely. It's not just about saving a few pennies here and there; it's about instilling a set of financial values that will guide them through life. But where do you start? Let's dive into the seven key financial values every child should learn, making sure your kids are set up for a future of financial success and independence.


Table of Contents

  • The Value of Saving

  • Understanding Money Management

  • The Concept of Earning

  • The importance of Giving

  • Financial Planning for the Future

  • Understanding Debit and Credit Cards

  • Investing and Growing Wealthy


kids learning about the value of money through saving

1) The Value of Saving

Saving is a fundamental concept that every child should grasp early on. It’s the cornerstone of financial security and independence. Teaching your kids to save involves more than just tucking away spare change; it's about instilling a mindset of looking ahead and preparing for the future.

Key Points:

  • Start with a piggy bank, then graduate to a savings account.

  • Set savings goals to make the process more tangible and rewarding.

  • Celebrate milestones to encourage persistence.

Saving is not just about accumulating money but understanding its value over time. Encourage your children to save for specific goals, whether it's a toy, a new bike, or even their college fund. This teaches them patience, delayed gratification, and the importance of working towards a goal.

kids understanding money management

2) Understanding Money Management

Money management is a critical skill that many adults struggle with, so introducing it to your children early can set them on the right path. Budgeting is a key component of money management and can be as simple as dividing their allowance or earnings into spending, saving, and giving categories.

Key Points:

  • Teach them the difference between needs and wants.

  • Use age-appropriate budgeting activities, like planning a small outing or managing a pretend store.

  • Introduce tools like budgeting apps or spreadsheets for older kids.

Money management is about making informed choices. By giving your children control over some of their financial decisions, you're not only teaching them how to budget but also how to prioritize and make sacrifices—essential skills for lifelong financial health.

kids learning ab out the value of money through earning

3) The Concept of Earning

Earning money is a powerful lesson in value, hard work, and independence. When children earn their own money, they gain a deeper appreciation for it and what it takes to obtain it.

Key Points:

  • Encourage small jobs or chores for money.

  • Discuss the feeling of satisfaction that comes from earning.

  • Highlight the importance of working towards financial goals.

Teaching your child about earning is also an opportunity to discuss career interests and the value of education in achieving financial goals. It's a conversation that evolves with age but remains rooted in the principle that effort and reward are closely linked.

learning about giving and donating

4) The Importance of Giving

Giving back is a financial value that enriches both the giver and the recipient. It teaches children about compassion, community responsibility, and the joy of helping others.

Key Points:

  • Encourage donating to causes they care about.

  • Volunteer together as a family.

  • Teach them that giving isn't just about money; it's also about time and talent.

Instilling the value of giving in children helps them develop into empathetic and socially responsible adults. It's a reminder that money isn't just for personal gain but can also be a tool for making a positive impact in the world.

understanding planning and future thinking

5) Financial Planning for the Future

Financial planning for the future is about setting goals and understanding the steps needed to achieve them. This can be as straightforward as saving for a video game or as significant as planning for college.

Key Points:

  • Discuss long-term goals and how to achieve them.

  • Teach them about the power of compound interest.

  • Use real-life examples to illustrate financial planning in action.

Teaching kids about financial planning encourages them to think ahead and make choices today that will benefit them tomorrow. It's about understanding the value of investment, whether in education, assets, or experiences.

learning about credit and credit cards for kids

6) Understanding Debt and Credit

In a world where debt and credit are a reality for most, understanding how to manage these tools is crucial. The key is to teach children the difference between good debt (like an education loan) and bad debt (like credit card debt from unnecessary purchases).

Key Points:

  • Discuss the concept of borrowing and the responsibility it entails.

  • Explain interest rates and how they affect the cost of borrowing.

  • For older kids, simulate credit card use with a prepaid card or a controlled account.

Understanding debt and credit is about teaching children the importance of living within their means and the dangers of over-leveraging. It's a lesson in responsibility and foresight.

understanding investing for kids

7) Investing and Growing Wealth

Investing is about making your money work for you. While it might seem like a complex topic for kids, it can be simplified to the basics of earning interest on savings or investing in stocks or businesses.

Key Points:

  • Introduce the concept of investment through simple examples or games.

  • Discuss the importance of research and informed decision-making.

  • Highlight the long-term benefits of investing wisely.

Teaching your children about investing and growing wealth is ultimately about showing them how to achieve financial independence. It's an advanced topic, but even basic principles can inspire a mindset of growth and prosperity.


Instilling these financial values for kids isn't just about teaching them to manage money; it's about preparing them for a lifetime of financial well-being and independence. Each of these values builds upon the others, creating a comprehensive financial education that will serve your children well into adulthood.

Remember, the most powerful lessons are those demonstrated through your actions. By embodying these values yourself, you'll not only teach your children what it means to be financially savvy, but you'll also show them.

Call to Action

Now that you're armed with knowledge, it's time to put these lessons into action. Share your experiences and successes with your community. Together, we can prepare the next generation for a bright financial future.

Additional Resources

For further guidance, consider exploring books, apps, and websites dedicated to financial literacy for children. These tools can provide valuable support as you embark on this educational journey with your child.

Teaching financial values to kids is a gift that keeps on giving, setting them up for success in ways that extend far beyond their bank accounts. So, let's start those conversations, one coin, one budget, and one dream at a time.


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