Pregunta:

I really want to help my kids learn how to be good with money, but I'm not sure where to start, especially since we don't even count out dollars and cents at the cash register anymore! Are there any tricks that actually work?

Respuesta:

It's not often that you hear kids say they want to grow up to be Wall Street traders. And yet, the benefits of understanding money and investing early are clear. When kids have money confidence early in life, they've got the best chance of reaping the rewards of compound interest, budgeting savvy, and lifelong financial literacy.

We're born to want everything-right now-and that's only been exacerbated by the next-day-delivery world we live in today. But one of the greatest gifts we can give our kids is the ability to delay gratification. When we can do that, not only are we better at avoiding grocery store tantrums, we're also much more likely to be able to find financial stability as an adult. So, how do we help kids understand that when we tap our card at the store, money doesn't just magically disappear into the air?

Start Young—Really Young

You don't need to wait until your kids are teenagers to start talking about money. In fact, you shouldn't. A well-known study from Cambridge University shows that many money habits are already in place by age 7. So, the best time to start the money conversation is before your kids hit third grade.

By the time your child is 5, they're already learning math and logic. That means they're capable of grasping the basic concepts behind earning, saving, and spending-even if they don't understand compound interest just yet.  They can also understand the idea of making choices-which is integral in money management.  It works well in the grocery store: If you get the Oreos, you can't also get the Chips Ahoy.  Start giving them a little agency, bit by bit.

The key is to make money part of your everyday conversations. Talk about it while you're in the store, paying bills, or evaluating prices. Explain the choices you make, like opting for the off-brand cereal so you can save a few dollars that you can put towards something else. Kids aren't born understanding the difference between wants and needs. It's your job to show them.

Use Visuals—And Keep It Simple

Money becomes much more real when kids can see it and touch it. Show your child ten $1 bills and then brainstorm together: What could you do with $10? Could you buy one LEGO set, or ten cans of soup? Could you save half and spend half? Let them suggest how to divide it. You might be surprised by their instincts.

A great way to make this concept stick is to start saving as a family. You can use a clear jar, a digital savings app, or a shared online account. Let your kids watch the balance grow, and when it's big enough, let them help decide how to use it-a pizza night, a family outing, or a donation. This teaches the power of waiting-and the satisfaction of achieving a goal.

The Allowance That Teaches

Around age 5 is also a good time to start giving an allowance-you can start with a very small amount, even just $5 per month to begin with. Sit down with your child and help them divide their allowance into categories. A simple jar system can work wonders: One jar for saving, one for spending, and one for sharing.

As your kids get older, you can offer extra opportunities for them to earn more money through optional chores-not regular ones. (Regular household chores should be done simply because they're part of the family!) But cleaning the garage or mowing the lawn? Those can offer a great way to earn.

Build Knowledge with Age

As your child grows, build on what they've learned. Introduce more advanced topics like borrowing, interest, and credit. Use online calculators to show what happens if you only make the minimum payment on a credit card. Let them see how quickly debt can snowball.

It's also important to give them more financial responsibility as they mature. This could mean giving a larger monthly allowance in middle school or high school-enough to cover expenses like a portion of their phone bill, or outings with friends. Let them learn from their mistakes. If they overspend and run out of money, don't bail them out. That's the lesson.

Make Investing Real—And Relatable

Investing can seem abstract, especially to a child. The key is to connect it to their real life. Open a custodial investment account and let them buy a few shares of a company they know-maybe Disney, Nike, or Apple. Watching these stocks rise and fall over time gives them a feel for how the market works.

It also introduces the concept of diversification. When kids see one of their favorite companies drop in value, but their index fund holds steady, they start to understand why not putting all your eggs in one basket matters.

Games like Monopoly or Life can be a fun entry point for money conversations. If you want to take it a step further, consider stock market simulators like The SIFMA Foundation’s Stock Market Game , or HowTheMarketWorks.com. These let kids practice investing with virtual money—no risk, but big educational rewards.

Also, fractional shares-sometimes called "stock slices"-are also great tools. Some platforms let kids invest as little as $5 in a single company, which makes investing more accessible and tangible. Seeing their name on an account (even if it's custodial) can give kids a sense of ownership.

Tie It to Their Interests

If your daughter loves animals, let her invest in a company that makes pet products. If she's obsessed with outer space, show her how to research companies in aerospace. You can even do a fun math project together: Calculate how much money she would have today if you'd invested $100 in her favorite company the day she was born. (Just be ready to explain why you didn't!)

Keep Learning Together

Teaching your child about money doesn’t mean you have to be a financial expert. There are plenty of excellent resources written for parents, including the book written just for young adults called “How to Money,” by Jean Chatzky, Kathryn Tuggle and their team at HerMoney. The book breaks down complex ideas into simple, actionable steps… And if you’re reading along with your child, you might be surprised at the lessons you pick up yourself.

Bottom Line

You don't have to wait until your child is old enough to open a checking account to talk about money. In fact, the earlier you start, the better. Use tools that fit your child's age and interests, talk openly and often, and give them hands-on experience with money whenever you can. Financial literacy is a lifelong journey - and the best time to begin is now.

Your kids may not grow up to be traders. But they'll grow up confident in their financial decisions. And that's worth more than gold.