Raising Kids that understand Money

Money is one of the hardest concepts to teach kids. You want kids to understand the value of saving their money but you also don’t want them to be so caught up that they put a value on rich and poor. You want them to save but you also want them to learn how to be charitable. You want them to make good decisions on how to save money but you don’t give them the freedom to fail and learn their lesson.

Why is it so hard?

  • It’s hard to get them to understand the difference between $100-$1000. As an example: I couldn’t imagine making 10 million dollars compared to making 100 million dollars. I don’t have either so it’s hard to grasp the concept of how different those 2 amounts would be for someone.
  • It’s hard to make them think that saving money is an enjoyable transaction. Every time we go to the bank it’s a negative experience for my kids. They are giving their money to the bank knowing full well that I won’t be giving it back to them for something they want.
  • We preach about growing their money with compounding interest but it’s hard for them to feel the effects of this.

My Failures

  • My kids have piggy banks and every time a good amount of money is saved up, I make them deposit it into their brick and mortar bank. They are getting NO interest on their savings.
  • I don’t give them any freedom to spend their money as they wish. They have had zero opportunity to make their own decisions. They have never felt buyer’s remorse.
  • The few times they had gift cards to spend at Target, I’ve paid the extra few dollars if the cost went over.
  • I set up an allowance but then never had spare dollars and change to pay them.
  • We made cards to have them get paid for extra chores around the house. They didn’t want to do it, so we had to nag them to get it done.


After reading The First National Bank of Dad by David Owen I picked up some tips and I’m feeling more relaxed by relinquishing some of my control of my children’s finances. Knowing how I’ve failed in the past I started looking at ways to automate this process. My daughter has an old iPad that has very few apps on it: camera, texting so she can send her grandparents messages and spanish lessons. Adding one more app to her iPad will be very exciting for her. I added FamZoo.

Important realizations…

  • I have to give them opportunities to earn money.
  • I have to give them the freedom to make any decisions they want and let them deal with buyers remorse.
  • I have to give them a charitable option.
  • I have to show them compounding interest at a level that is meaningful to them.
  • I have to automate it! Here is our affiliate link for FamZoo.

So far we have set up FamZoo to have 50% go into spending, 25% into Charity and 25% into Saving.

We had orignally thought to have mason jars in each kid’s room but that just set up the question of if their friends were skimming off the top.

We set up their chores to alert them on their ipad. This way they can be alerted without me nagging or having any expectations.

The first alert my daughter received was to mop the floor and voila! I’m super excited to have this automated, the biggest issue we have had is forgetting to give them money on the first of the month AND when we are at the store and they want something, we don’t know how much is in their piggy bank and/or we forget to deduct it from their piggy when they get home.

She earned $1

We receive a small commission 0.05 from FamZoo if you sign up for their service.

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