How do you teach your children about saving and spending money?

It is easy to say, "A penny saved is a penny earned," (thank you Benjamin Franklin!), but how do you teach your kids about what things cost, about saving for bigger purchase, about saving for their future and about meeting needs and then wants? As Rebecca shares, "It’s a lot of conversations, a lot of honesty, and no shame."

Talking about money openly and honestly is part of the equation. Modeling balance and priorities is another part. And, helping our kids see saving and spending in real time is a huge part. While helping our children understand money is a nuanced subject, we each share our perspectives below.

Ashley, Millennial Mom Nutrition Coach from @AshleyBreaksTheCycle

We’re teaching our kids about money the same way we learned… by winging it and hoping they figure it out before college. Jk jk. If I’m being honest, we’ve never had a formal sit-down talk about money. This question is probably a sign that my husband and I should do that soon.

Our kids hear us talk about expenses, but they don’t truly understand the value of a dollar yet. My oldest (12) asks for money the most—Starbucks runs, Walgreens trips, food with friends—which is totally normal, but it adds up fast. She’s hoping to babysit more this summer so she can earn and spend her own money, and she’s started using a savings binder, which we’re encouraging.

Our middle son is a saver—his piggy bank stays full. And our youngest? If a dollar touches his hand, it’s gone within minutes.

Both my husband and I had jobs early in life, and we hope to instill that same work ethic in our kids when the time is right. We don’t expect perfection—but we do want them to learn that money is earned, not expected.

This is definitely a conversation we’re still growing into as a family—but one that will help shape their character in the long run.

Emilee, Book Aficionado from @The BookClubCart

Recently, my 4th grade son went to a friend‘s house who had gotten a 3D printer for Christmas. My son came home that afternoon, with little toys his friend had made him, exclaiming he needed a 3D printer so he could make toys for free.

As we all know, those little toys are not free; there is the cost of the printer, the silk, maintenance, etc. Of course, at the age of 10 it is perfectly normal to see it as free. To them; the house is free, their food is free, even gifts from Santa are free. And we are so blessed by all of that!

However, at dinner that night, we talked about the cost to make that little toy. It was fun listening to my 7th grader chime in following what he learned about cost of goods from a class he took in school. I think conversations like that are important to start introducing.

Walking the line of not putting too much focus on money versus putting too much into it can be a tough one. And then meeting them at their levels of understanding depends on their age and experience with it.

I love hearing what others are doing to teach this!

Ali, Book Aficionado from @The BookClubCart

Right now, our kids earn extra spending money through chores. At the same time, since they’re still on the younger side, my husband and I are very clear that we cover their needs. That includes sports, activities, and experiences. Where we’ve started to shift the conversation is around wants—things like extra sports cards beyond the usual, or a new Barbie that isn’t a necessity.

We also try to be open with our kids about what things cost, always keeping it age-appropriate. Recently, my oldest went out to dinner with friends without us, and we gave him a set amount of cash. What stood out most was watching him problem-solve in real time. He had to look at the menu, consider prices, and decide what he could afford. Later, he told us he hadn’t initially thought about leaving a tip, which turned into such a valuable learning moment.

That experience gave him a new appreciation for what goes into eating out and helped him better understand why, when we’re together as a family, we sometimes say no to certain things on the menu—and other times say yes. For us, those real-life moments have been some of the best teachers when it comes to money, responsibility, and gratitude.

Kim, Home Connoisseur from @Reverie.and.Root & Founder of Spilling Goodness

Have a Fundae! That was the "slogan" my daughter used when she launched her homemade ice cream business. When she came to us with the idea, we loved it! But, we also worked with her to map out her costs, her margin, her projected sales and helped her vet if this adventure was really what she wanted to do - complete with a spreadsheet. She bought the containers, paid for the labels, the ingredients and with the proceeds from her first order, she bought a domain name. It was a proud mama moment! But, more than anything it was incredible to see what she learned. Yes, better ingredients cost more money. Yes, margins are narrow and it takes a lot of work to earn a little bit. And yes, if you save as you go it starts to add up. Her brothers definitely watched and took notes!

We've also encouraged our kids to have savings accounts where they "put away" a little money as they earn it or are gifted it for holidays or birthdays from grandparents. This started with some reluctance (although the bank has a fun "junior savers" program). At first, they weren't thrilled that some money was "gone." But, as they have seen it grow, it has become more exciting. This past year, my husband and daughter set up her first CD. This was a master class in interest. The CD earned more interest than her savings account - after it matured, she had $34 in interest! All on her own accord, she decided to roll it over to another CD. What an interesting dinner conversation that was!

All this to say, there are some ways we "teach" saving and spending. There are more ways that we lead by example. And there are many ways that we explain and get out of the way.

Jen, Bespoke Travel Planner from @GlobalOnDemandTravel

Teaching my kids about saving and spending has really come down to making money feel real. Each of them has their own bank account, and once they saved $500, I matched it and moved it into an account that earns more interest. Watching their money grow has been such a motivator and helps them understand that saving more means their money can actually work for them.

We also talk openly about the cost of everyday goods, what college actually costs, and the debt we carried from graduate school. They know we take care of their needs, but wants are saved for birthdays and holidays. Those conversations have helped them see the true value of work, money, and making thoughtful choices.

Rebecca, Woman's Leadership Coach from @PleasantlyAggressive

We never shied away from discussing the cost of sports, vacations, cars, etc. Even when they didn’t really have a context, we believed it was important for them to begin with understanding real numbers so that they could develop their own relationship with money.

When we make choices as a family, we begin by explaining that having a budget means we can’t afford everything! We have to make choices based on our values and our goals. We talk about the difference between investing in them (through sports or college) and our family (with trips and experiences), and just spending (dinner or other necessities). We talk about buying things second-hand (cars, clothes, toys) and how it benefits the environment and our wallets. We talk about saving money for bigger purchases (e-bike or new phone). We also discuss the value and quality of purchases in relation to their cost (splurge vs. save).

That’s all to say, it’s a lot of conversations, a lot of honesty, and no shame.

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How do you teach your children about saving and spending money?