How do I teach my kids to be financially responsible?

Dear Chuck,

I had great hopes of teaching my children about money this summer. With only a few weeks left, can you give me some easy talking points?

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Raising Money-Savvy Kids

Dear Raising Money-Savvy Kids, 

First of all, I love to hear that you want to be intentional about teaching your children financial stewardship. Summer is a great time to introduce the subject to your children, but don’t stop once they head back to school. Children are sponges. They watch us handle money and often come to their own conclusions. That’s why it is critical that we, as adults, understand what God says about the topic, so we demonstrate what we want them to know. In this article I have broken down some age-appropriate ways to teach your children about financial stewardship.

Teaching toddlers

This is a great time to instill the habit of delayed gratification — of learning to wait before getting what is wanted and seeing the reward that follows work. Requiring children to pick up their toys before they get a treat is a life skill in the making. As children begin to ask or demand things, patiently talk with them about why the answer is “No.” For example, a child who wants pizza for dinner can be told that Friday is pizza night, and that is what you budgeted for. This illustrates the financial construct of planning, waiting, and reward. They are capable of understanding anticipation, a plan, and the word “No.”

Teaching elementary-age

At the heart of every well-rounded budget are three goals: saving, giving, and spending. I encourage parents to give children an allowance for work around the home. When my children were young, my wife, Ann, got a three-ring binder for our boys with three pouches labeled Saving, Giving, and Spending. This taught them how to divide money as they earned it. The lifetime discipline of setting aside 10% of all money earned for the work of the Lord has eternal ramifications. As a child sees their savings grow, they can participate in making plans, another good discipline. While spending may seem like the easy part, how to shop can be a learned skill as you help your child think through wants and needs and work toward that end. 

Our free eBooks and Coloring downloads may be helpful.

Teaching teens

A great way to connect with your teens is by discussing money. It opens the door to great conversations about life. Walking through a functional budget is a good place to start, and we have free tools that can help. Too many teens enter adulthood without counting the costs in their purchasing decisions. A budget is the sum total of all the financial parts they will have to consider when they are on their own. 

Invite them to join you when you go through bills. They will gain an education on the cost of things, from utilities to insurance, food, rent, and more. Have them accompany you when shopping for a car or making choices at the grocery store. Patiently explain how you balance needs versus wants. 

Warn them about the dangers of scams via phones, texts, mail, and social media. 

Family resources

Consider enrolling your entire family in Crown’s Online MoneyLife Personal Finance Study to learn practical financial skills. Or gather a small group of parents and teens. Many years ago, I took one of my sons and his friends through Crown’s 10-week study. To celebrate our completion, I told them each to bring $5, and instead of going out to eat, my wife was going to show them how much more food cooking at home would provide. They had a feast complete with a teen-pleasing dessert. The lessons stuck with that son!

Our God Provides video series will make a lasting impression on your family and create opportunities to discuss important themes. 

The July 11th Ask Chuck about financial freedom can also provide some insight into being a good steward. 

This Crown article gives more details on teaching the following topics to children:

• Stewardship.
• How to Work.
• How to Give.
• How to Save.
• How to Spend.

Help your older children discover their purpose and unique design through the several tools we have on our website. Give them the confidence they need to face the worldly lies they either already have or will encounter in the future. Encourage them to rest in the promises of God. The principles He gave in His Word are not meant to restrict them but are for their good and ultimately their freedom. 

Remember the words of Moses: 

“And now, Israel, what does the Lord your God require of you, but to fear the Lord your God, to walk in all his ways, to love him, to serve the Lord your God with all your heart and with all your soul, and to keep the commandments and statutes of the Lord, which I am commanding you today for your good?” (Deuteronomy 10:12–13 ESV).

“You shall teach them to your children, talking of them when you are sitting in your house, and when you are walking by the way, and when you lie down, and when you rise” (Deuteronomy 11:19 ESV).

I’d like to invite you and your family to join a free Crown Bible study on the YouVersion app. We have several devotionals regarding money and stewardship that can provide encouragement by bringing God’s Word into your daily life.