How do I teach my kids about budgeting and money?

Hi, so my parents never really taught me much about money or finances. The only thing they did was take me to open a checking account when I got my first job, which I really appreciated. Now that I have my own kids, I want to do better and make sure they learn about finances. I’ve read that it’s good for kids to see their parents paying bills and stuff, but I’m not sure how that would work. Should I tell my child how much my paycheck is and how I divide it up? I’ve always thought that you shouldn’t tell kids things you wouldn’t want the whole world to know because they tend to share everything, even if they don’t mean to. I’m a single mom with a 12 and 16-year-old.

Good morning. This is a big topic, but I can share some pointers. Kids really learn by example. For instance, if you want them to stay off their phones, you should do the same first. When it comes to financial literacy, it should be a core value at home. Show them that you have a good relationship with money, like saving and investing. Talk about budgeting and living below your means. Teach them to save for emergencies and explain what happens when unexpected expenses come up.

As a dad of three, what I did was start talking to my kids about money when they reached about 12. I didn’t go into specifics like how much I made, but they heard about paying off debt and building an emergency fund. They learned the importance of budgeting and the sacrifices that come with it. When they each turned 18, I gave them a deeper look at managing finances. You know your kids best, so you can decide when to share more details.

When my kids were about 12, I gave them a small weekly allowance. We didn’t tie it to chores, but they had some light stuff to do. With the allowance, we discussed options like spending it all or saving some. They ended up figuring out how to invest part of it, which was cool to see. Over time, they learned to prioritize savings and investing over frivolous spending.

I took my kids grocery shopping and talked about prices. It helped them understand when to treat purchases as special or when to be more careful. If you’re worried about sharing exact numbers, you can discuss percentages instead. For example, say how much goes to taxes or housing without revealing your income.

I’d recommend keeping some details private for now. Maybe when they’re older, you can share that info. You could use an envelope system for budgeting so they see how money is allocated for bills. Even showing them how you manage your accounts would be beneficial.