Money management is effectively a strategic technique but imparting this knowledge to kids can be a tough task. One way could be to allocate money to certain activities. There are some rewards apps for kids that have implemented this and are seeing great results. Teaching money management to children is about setting a good example and when you have the technology to help you, can it get better?.

By age 3, children can understand basic money concepts like an exchange, making choices, things that carry value. Children develop financial and economic understanding once they personally experience it.

Let’s go over a few ways to teach your kids the art and science of managing money.

5 good money management lessons to teach your kids:

Demonstrate the value of money

Introduce them to coins first, tangible way to learn about money. Teach them the value of coins and encourage them to save their coins in a piggy bank or jar. Handling money demonstrates the basics of money management. Kids can eventually see their money growing and learn to save.

Teach them about saving, sharing and spending with allowance

Through an allowance, you can teach the value of earning money. You can give your kids a flat allowance in exchange for basics expected of them (e.g making their own beds, organizing utensils, etc) giving them opportunities to earn more. You should also encourage them to keep their money aside for savings, for charity and for spending in separate piggy banks.

Create a budget together

Allow your kids to prepare a family budget along with you. Kids can practice their budgeting skills by being part of it. Help them to understand the cost of spending money on one thing. Take them for grocery shopping with you and show how you compare brands to make your money buy more things. If your child wants to shop with his/her earnings, show them how to compare stores and products with online circulars.


Encourage charitable giving

Explain to your kids why giving back to society through charity is a good habit. Encourage them to give some of their allowances to the less fortunate. Help your child to identify ways where they can spend money to help others. Understand what your child feels strongly about and show him/her ways to help. If he loves animals, help him raise money for a local animal shelter.

Teach them about credit at an appropriate age

When your child is old enough to understand what credit is, let them borrow some amount of money from you. Explain to your child the credit system and how they can repay you every week or month. Keep track of the remaining money each week until it is completely repaid. With teens, help them to understand the importance of handling credit.


Money management is the most valuable life skill you can teach your children. Your child has something to learn financially at every point in their life, from toddler to college. To make the money management teachings more fun you can install an app to track chores and allowance for your kid.