Why Financial Literacy is one of the Best Gifts You Can Give Your Child (And How to Start Today)
As parents, we’re always thinking about how to give our kids the best start in life. From ensuring they’re healthy and happy to nurturing their dreams, we do everything we can to set them up for success. But there’s one gift that often gets overlooked — financial literacy.
Teaching your kids about money isn’t just about giving them the tools to budget or save. It’s about setting them up for a future filled with financial confidence, know-how and independence. And the earlier you start, the stronger the foundation you’re building for their future. This is one gift that will keep on giving.
Why Start Early?
It’s simple: the earlier your kids understand money, the better equipped they’ll be to make smart, confident decisions as they grow. Here’s why starting early is so important:
- Good Habits Start Early
Just like learning to ride a bike, good financial habits take time to develop. When kids learn how to save, spend wisely, and understand budgeting from a young age, they’re more likely to carry those habits into adulthood. These early lessons lay the groundwork for a lifetime of financial confidence. - Confidence in Handling Money
One of the biggest roadblocks many adults face is not feeling confident when it comes to managing money. When kids understand how money works, they build the confidence to make their own decisions — whether it’s setting up a savings account, budgeting for a special treat, or understanding how credit works. - Avoiding Financial Mistakes
We’ve all made our fair share of financial mistakes, right? Starting early gives your kids the chance to learn from their mistakes while they’re still under your roof. By teaching them about saving, spending, and debt, you can help them avoid those costly mistakes when they’re older. - Thinking Long-Term
Teaching kids about money isn’t just about today — it’s about tomorrow. When kids understand the importance of saving and investing, they start thinking about their long-term goals instead of focusing on immediate gratification. This mindset is key to creating wealth and financial independence.
So, When Should You Start?
If you’re wondering, “Is it too early to teach my kids about money?”, the short answer is: Nope! It’s never too early! In fact, the sooner you start, the better.
How to Get Started Today
The best part? You don’t need to wait for the perfect moment to start teaching your kids about money. You can begin today, with simple steps that set them on the right path.
Start with one conversation — that’s all it takes to get the ball rolling. You don’t need to dive into the deep stuff just yet. Talk about how money is earned, how it’s spent, and why saving for the future is important. For example, if your child receives pocket money, encourage them to set aside a portion for saving. You could even set a goal together, like saving for a special treat or experience.
Here’s an easy activity to try today:
The 70/30 Rule.
This is a simple and fun way to teach your kids about budgeting. Help them divide their money into three categories:
- 70% for spending (things like food, toys, clothing, entertainment)
- 30% for savings (the money they’ll save for something special down the road)
Even if they’re not quite ready for full budgeting, this gives them a fun and tangible way to understand the importance of saving and balancing their money.
Need Some Extra Guidance?
If you’re feeling a little unsure about where to go next, don’t worry — you’re not alone!
With my Money Smart Kids: $30K Plan, I empower parents like you to teach your kids how to save, invest, and build wealth — all while keeping things simple, fun, and age-appropriate. We do it in a real life scenario where you will jointly build up to a $30K share portfolio (or more) together!
Final Thoughts
Financial literacy is a gift that will last a lifetime. The earlier you start teaching your kids about money, the stronger their financial foundation will be. And remember, it’s never too soon to start. You’ve got this — take it one step at a time, and together, we’ll help your kids build a bright, financially confident future.
Happy days ahead, and let’s do this!
Hey!
