Important Things To Teach Your Kids About Money

Important Things To Teach Your Kids About Money

July 07, 2020

If you have children, you know that you need to teach them about how money works, including how you use money, how you earn money, and how saving in a bank account or through investment accounts can help build your money over time. However, it’s also important that you pass down your values around money. Why is it important to our family to save for the future instead of spending everything we make? Why do we choose to use some of our money to help the less fortunate? 

Regardless of their age, remember, your kids are watching what you do. If you’re always buying new toys for yourself, complaining about your credit card bill, or rushing to spend a tax return or other windfall as soon as you receive it, you’re teaching them that spending money is more important than saving. On the other hand, if you talk about waiting for items to go on sale before buying them, putting away some of each paycheck, and why you save and invest for future goals, your children will pick up on those good financial habits. 

Teaching money lessons to your children should start when they are young and continue into their adult years. Below are some of the important lessons to pass down and when to teach them.

Young Children And Money Lessons

Even when children are fairly young, they can start learning the basics of money. Sit down and teach them how coins and dollar bills work, including how they add up. Discuss the cost of some household basics like bread and milk. Explain how your job helps provide the money to buy these things. 

Money Lessons For School-Age Children

At this point, your children can understand some more complicated money concepts. Though you likely don’t want to tell them all the details of what you earn and spend, consider sharing some details of utility bills or other expenses so your children see where your money goes, and why you don’t always have extra money to spend on games or trips. 

If your kids receive a financial gift, such as birthday money from a grandparent, teach them how to save some of the money today so they can make a bigger purchase in the future, such as a bike or video game system. If you’re able to and willing, you can offer to match their savings to bring them closer to their goal. You might also consider teaching them the basics of the stock market, such as how their favorite sneakers, games, or electronics are made by companies in which they can invest. 

Teenagers And College Expenses

One of the most important money lessons you can impart to your teenagers involves paying for college. Be sure to discuss no later than their freshman or sophomore year of high school how much money you’re able to provide toward higher education. Discuss the difference in school costs between public and private, and the additional travel costs to attend a school far from home. Also teach them about financial aid options, including how borrowing thousands of dollars now for a pricier school can lead to a decade or more of paying back the loans, which may delay planning a wedding, buying a home, or other milestones of young adulthood.

Money Lessons For Your Adult Children

Even when they’re adults, you should still impart financial lessons to your children. Most importantly, you need to keep them up to date on the details of your estate plan. Do they know where your will is, what long-term care or life insurance you carry, and the details of your financial accounts? Are there charities or other causes you want your assets to support after you pass? These can be difficult conversations to have. However, it’s important to have these discussions today before a sudden illness or your passing makes them impossible. Because of that, consider having your children sit down with you and your financial advisor to ensure you cover all the bases. 

An experienced financial professional can help ensure you’re passing down your values around money, as well as the personal finance basics your children need to know. If you would like our help in discussing money and the future with your family, contact us at Haydel, Biel & Associates at (626) 529-8347 or email Ricky directly at

About Haydel, Biel & Associates

Haydel, Biel & Associates is an independent financial advisory firm serving individuals and families near Pasadena, California. The firm was founded in 2004 by Chris Haydel and Ricky Biel with a desire to provide unbiased, client-centered, community-based financial advice. Together, they have built a practice that has grown into a family of caring, smart professionals committed to blending proven investment methodologies with creative financial technologies that make it easier than ever to accomplish your goals. They strive to keep things simple and fun to give their clients peace of mind and alleviate financial stress. HBA Wealth takes care of their clients’ needs first and foremost and goes the extra mile to make their clients’ finances grow. To meet and see how the HBA Wealth team may be able to help, contact them today at (626) 529-8347 or email Ricky directly at