Written by: Lace Piscitelli
Teaching Kids About Love and Money: Setting Financial Values for the Next Generation
When we raise kids, we want to teach them lessons that will help them grow up to be kind, responsible and independent. Two of the most important lessons are about love and money – two things that shape how we navigate the world and build relationships.
Teaching kids about love and money isn’t just about practical skills like budgeting or saving. It’s about values, a healthy relationship with money and showing how love and empathy can guide financial decisions. In this post, we’ll look at how to help kids understand the connection between love and money and set financial values for life.
Why Teaching Love and Money Matters
Kids are observant. They pick up on cues about how we manage money and show love. Whether we like it or not, our habits and behaviors around finances and relationships become the foundation for their understanding of these big concepts.
Teaching kids about love and money gives them the tools to make thoughtful financial decisions, build meaningful relationships and handle life’s ups and downs. These lessons help them see money not as an end in itself but as a means to an end and a way to show care for themselves and others.
Step 1: Lead by Example
Kids learn more from what you do than what you say. The first step to teaching them effectively is to show them healthy financial habits and values in your own life.
Model Generosity and Empathy
Show your kids how financial decisions can reflect love and care. For example, involve them when you donate to a cause, help a friend in need or save for a family trip. Explain how these choices align with your values.
Be Transparent
Age-appropriate honesty about your financial decisions can be powerful. For example, if you’re saving for a specific goal, share why it’s important and how you’re sacrificing to achieve it.
Enjoy Thoughtful Spending
Focus on experiences and thoughtful gifts rather than buying stuff. This will help kids understand that love isn’t measured by price tags but by intention.
Step 2: Introduce Financial Basics Early
Money understanding starts with small, bite-sized lessons that build on each other over time.
Teach the Value of Money
Start by explaining where the money comes from and how it’s used. For younger kids, concepts like earning an allowance for chores or saving coins in a piggy bank are great places to start.
Save, Spend, Give
Introduce the “three-jar method” to divide money into saving, spending and giving. This visual approach helps kids see the balance between enjoying their cash now, preparing for the future and helping others.
Use Everyday Moments
Use everyday moments—like grocery shopping or paying bills—as opportunities to teach. Show them how to compare prices, prioritize needs over wants and plan within a budget.
Step 3: Link Money to Emotional Lessons
Kids need to understand money is more than a transactional tool; it’s also tied to emotions, relationships and values.
Link Love to Money
Teach your kids that financial decisions can show care and responsibility. For example, paying bills on time keeps the family safe and comfortable, and saving for the future ensures everyone’s needs are met.
Talk about Emotional Spending
Help kids see how emotions drive spending habits. Explain how celebrating special moments might involve spending money but also how saving and planning can make those moments even more meaningful.
Practice Gratitude
Gratitude is key to a positive relationship with money. Regularly discussing what your family is thankful for helps kids appreciate what they have and see money as a means to support their values, not a source of stress.
Step 4: Involve Kids in Decision Making
Giving kids a say in financial decisions helps them feel powerful and understand money firsthand.
Set Family Goals Together
Whether it’s saving for a vacation, a new toy or a community project, involve your kids in setting goals. Show them how the family can work together to save and plan to achieve those goals.
Let Them Manage Their Own Money
As kids get older, consider giving them a small allowance or budget to manage on their own. Encourage them to track their spending and reflect on their choices so they can learn through experience.
Show Them How to Problem Solve
When money problems arise, involve your kids in finding solutions. For example, if there’s a tight budget for back-to-schoolback-to-school shopping,, discuss ways to prioritize needs or find alternatives.
Step 5: Prepare for the Future Together
Financial literacy is a lifelong journey. As your kids grow, continue to build on what they know and prepare them for independence.
Teach Long Term Planning
Introduce concepts like saving for college, investing or retirement in age-appropriate ways. These lessons help kids understand the importance of thinking ahead.
Talk about Credit and Debt
For teens, explain the basics of credit, loans and interest. Use real-life examples to show the risks and rewards of borrowing money.
Give them Financial Independence
As your kids approach adulthood, give them opportunities to practice managing their own money, like opening a bank account or setting a budget for college expenses.
Teaching kids about love and money is about more than just financial literacy—it’s about helping them develop values, empathy and a healthy relationship with money. By modeling good behavior, involving them in economic decisions and linking money to emotional lessons, you set them up to become responsible and caring adults.