Many parents struggle with teaching their children about money - how to spend it, save it, and understand its value—without overwhelming them. Financial stress is real for many families, and introducing kids to those concerns too early can add unnecessary anxiety. But while the conversation may be difficult, that doesn’t mean it isn’t necessary. In fact, the earlier parents start these lessons, the more prepared children will be to make smart financial decisions as adults.

According to a Brigham Young University (BYU) study, children who are given hands-on opportunities to manage money from a young age are more likely to be financially responsible later in life. “Beyond talking about money management, it's really important for parents to give kids an opportunity to manage money and make decisions,” said Dr. Ashley LeBaron-Black. Her research shows that these experiences not only build financial competence, but are linked to improved mental health and stronger interpersonal relationships in adulthood.

In Miami-Dade County, Future Bound Miami, funded by The Children’s Trust and others, gives kids an early start by offering free Children’s Savings Accounts to eligible kindergarten students in Miami-Dade County with up to $50 initial deposit placed in the account. Visit futureboundmiami.org for the list of participating schools. Plan for expansion and more monetary incentives and savings matches will be introduced over time to keep the savings account growing.

Starting early also helps reverse bad habits. In low-income households, kids often learn that carrying credit card debt is normal. But after taking a finance class in high school or when exposed to other financially healthy habits, children and youth can learn about the dangers of high-interest debt. Students in the Summer Youth Internship Program (SYIP) get financial literacy classes and have to open an account with The Educational Federal Credit Union to even qualify for the paid internship. Learning about finances is also increasingly becoming part of enrichment activities offered by Trust-funded summer camps and after-school programs.

Still, there is a lack of financial education in many circles. In an article in CNBC.com, financial literacy advocate Tim Ranzetta, founder of Next Gen Personal Finance, warns that money is still a taboo topic in many households. “Coming out of the pandemic, there was the realization that a lot of people are getting left behind,” he said. “This education is necessary.”

So how can parents teach their children about money without causing undue stress? Experts recommend a balance of hands-on experience, open communication, and age-appropriate guidance. Here are five ways to get started:

1. Teach the Value of Money Through Experience
   Even small amounts of money help kids begin to understand choice and consequence. An allowance - especially one tied to chores - introduces work ethic and personal responsibility. Let them make spending decisions with their own money so they can feel the impact of those choices.
2. Encourage Saving and Goal Setting
   Delayed gratification is a powerful lesson. Help kids create savings goals for things they want, like a toy or a trip. Start with a simple three-slot piggy bank for saving, spending, and giving. As they grow, move toward kids’ savings accounts available at most banks and encourage saving a fixed portion of all money they earn or are gifted.
3. Keep the Conversation Going
   Money shouldn't be a one-time topic. Talk openly and regularly about budgeting, spending, and priorities. Let kids help make financial decisions in small ways—like choosing between meal options when shopping. This keeps the conversation relevant without overwhelming them with family financial stress.
4. Model Smart Habits
   Children learn most from watching their parents. Demonstrate responsible spending, budgeting, and saving. Set an example by creating a shopping list and sticking to it, saving for large purchases, or talking about the cost-benefit of fixing things instead of replacing them.
5. Let Older Kids Manage More
   As children become teenagers, give them more financial responsibility. This can include getting a summer job, paid internships, using a credit card under parental supervision, or budgeting for clothing or entertainment.

While it’s important to teach kids the importance of managing money, experts stress not to burden them with adult financial worries too early. Instead, give them space to explore and learn within safe boundaries. As Dr. LeBaron-Black reminds parents: “Keep trying, even when it seems difficult. The small efforts you’re making are going to pay off.”