What's the best way to teach kids about money?

Published 2026-05-13 · 2 min read · Wingman Protocol

Teaching your children about money is an important part of their financial education. It’s never too early to start, and making it fun and relatable can make a big difference. Here’s how you can approach this with practical steps anyone can follow.

Step-by-Step Guide

1. Start Early and Keep It Simple Begin teaching basic concepts as soon as your child is old enough to understand the idea of exchange for goods or services. For instance, if they want a toy, explain that money is used to buy it from the store. At around age 3 or 4, you can introduce the concept of saving by showing them piggy banks.

2. Create a Savings Goal Help your child set a simple savings goal. Maybe they want a new bike that costs $100. Break down the price into smaller goals: saving $5 weekly for 20 weeks. This teaches patience and perseverance.

3. Use Real-Life Examples Engage them in real-life financial decisions. For example, if you're a family of four spending $800/month on groceries, show them how much each item costs and explain the budget constraints. This helps them understand the value of money and makes it more tangible for them.

4. Allowance System Introduce an allowance system where they can earn money through chores or small tasks around the house. For instance, you could give $2 for making their bed daily, with a bonus if they do extra chores like washing dishes. This teaches responsibility and the value of work.

5. Teach Budgeting Skills Help them plan out how to spend their allowance. Maybe they want ice cream ($1), but it’s Friday and there are no other treats planned. Teach them that $1 is better spent on an extra cookie later than buying a whole ice cream cone today.

6. Open a Savings Account As your child gets older, open a savings account in their name. Many banks offer accounts for children with low minimum balances and no monthly fees. Check options like Ally Bank or Capital One 360, where they can start saving as young as 5 years old.

Recommended Products and Apps

1. Mvelopes - A budgeting app that helps manage finances by dividing income into different categories (like groceries, entertainment, etc.). Great for kids to see how their money is allocated. - Price: Free with a premium version available at $6.99/month.

2. Qapital - An easy-to-use investment and savings app geared towards young people, even as young as 13. It gamifies saving by setting up automatic savings goals like "Save for Disneyland" or "Save for School Supplies." - Price: Free with a premium version available at $6/month.

3. YouSave - A budgeting and goal-setting app designed specifically for kids, making it easier to teach them about saving and spending wisely. - Price: $5.99/download.

4. PiggyBot - A physical piggy bank that doubles as a savings tracker. It comes with an app where you can set up goals and monitor progress together. - Price: PiggyBot itself is free, but the app requires a subscription at $3.99/month for premium features.

5. Bank of Mom & Dad - A digital piggy bank that turns saving into a fun game. Kids earn points for saving and can use these to unlock rewards or activities. - Price: Free with in-app purchases available.

Real-Life Example

Imagine you're starting this process with your 7-year-old who has just received their first allowance of $5 weekly. You decide to make it more engaging by setting up a chart where they can mark off each day’s chores and