Money Lessons for Raising Financially Savvy Children: Our Top 10 Ideas for Instilling a Wealthy Mindset

Raising children with a healthy relationship with money isn’t for the faint of heart. Despite our best intentions, our kids may not listen, and come round two—when they raise their own children—we’ll hear about all the things we supposedly got wrong. Add to this the fact that financial literacy isn’t traditionally taught in schools, and it’s no wonder parents often feel ill-equipped to pass down these lessons.

But take heart: while we may not get everything perfect, we can instill values and habits that help our children approach money with purpose, responsibility, and confidence. Over the years, some of the most effective strategies have emerged, and we’re here to share them.

Our Top 10 Ideas for Raising Financially Savvy Kids

• Encourage Ownership Early: Let children earn their own money and make small decisions about how to spend, save, or donate.
  Example: Give your child a set allowance for completing specific chores and encourage them to divide their earnings into three jars: save, spend, and give. This simple system teaches balance and priority-setting from an early age.

• Turn Financial Lessons Into Games: Learning about money doesn’t have to be a lecture—it can be fun.
  Example: Use board games like Monopoly or apps designed to simulate real-life financial scenarios. These tools offer a playful way to learn about earning, spending, and managing resources.

• Teach Them the Value of Saving: Help children understand delayed gratification by saving for something they want.
  Example: If your child wants a new gadget or toy, set up a matching system. For every dollar they save, you’ll match it. This creates excitement around saving while showing that effort leads to rewards.

• Introduce Investing Basics: Plant the seed early for long-term financial growth.
  Example: Open a small custodial investment account for your child and let them choose a stock or fund to invest in. Use this as an opportunity to explain concepts like compound interest and diversification.

• Lead by Example: Children learn more from what you do than what you say.
  Example: Share age-appropriate details about your financial decisions, such as setting a family budget, saving for vacations, or donating to charity. This creates a transparent environment where money isn’t a taboo topic.

• Emphasize Experiences Over Material Goods: Show children that happiness isn’t tied to what they own.
  Example: Instead of splurging on the latest trends, prioritize family outings, trips, or shared hobbies. Highlight the memories created, not the things bought.

• Teach the Difference Between Needs and Wants: This is a foundational skill for avoiding financial pitfalls later in life.
  Example: When shopping, involve your child in discussions about whether an item is a need or a want. For older children, give them a small budget to manage during back-to-school shopping.

• Create Philanthropic Opportunities: Giving back fosters gratitude and perspective.
  Example: As a family, choose a cause to support during the holidays. Let your child participate in the decision-making process and, if possible, volunteer together to see the impact of giving firsthand.

• Set Boundaries Around Family Wealth: For families with significant resources, it’s vital to establish clear expectations.
  Example: Encourage children to earn their own spending money, even if family funds are readily available. This helps them value hard work and understand that wealth is not an endless entitlement.

• Celebrate Financial Milestones: Make financial success something to be proud of.
  Example: When your child reaches a savings goal or pays off a small debt, celebrate with a meaningful reward or acknowledgment. This reinforces positive behavior and makes financial responsibility rewarding.

Amida Wealth Family Conversations

Share this blog with your family and friends! Expanding your perspective about money and mindset can be a transformative experience, and it’s even better when shared with those you love. Start meaningful conversations about what wealth truly means—beyond finances—and explore how cultivating a wealthy mindset can strengthen relationships, foster gratitude, and build a legacy of well-being. At your next family gathering or dinner with friends, use this blog as a springboard to exchange ideas and learn from each other’s experiences. Together, we can create a more intentional and empowered approach to wealth and life.

Final Thoughts

No one has all the answers when it comes to raising financially savvy kids, and that’s okay. The goal isn’t perfection—it’s progress. By sharing our experiences and adopting practical strategies like these, we can equip the next generation with the skills to navigate life’s financial challenges with confidence and purpose.

At Amida Wealth, we believe that fostering a wealthy mindset is about more than just money; it’s about creating a legacy of well-being and empowerment. For guidance on crafting a tailored financial education plan for your family, reach out to us. Together, we can build a future of financial literacy and responsibility that lasts for generations. As always, remember that Amida is always one phone call and email away! 

What are your favorite tips for teaching kids about money? Share your ideas on our Social Media channels —we’d love to hear them!

Crafted for Amida World by Alise Bronstein. 

Disclosure: This article was published in collaboration with Amida Lifestyle, Amida Wealth Advisors, and Amida Business Management. The information presented is believed to be current. It should not be viewed as personalized investment advice. All expressions of opinion reflect the authors’ judgment on the date of publication and may change in response to market conditions. You should consult a professional adviser before implementing any strategies that may be discussed. Content should not be viewed as an offer to buy or sell any of the securities and/or strategies that may be mentioned or as legal or tax advice. You should always consult an attorney or tax professional regarding your specific legal or tax situation.