Using Money as a Teaching Tool with Kids

Growing up, we all face a barrage of information intended to educate and better prepare us for the future. We are exposed to arts and crafts, arithmetic, science, history, English, athletics, and other subjects that will somehow help us cope with the adult world someday.

While these topics are important in becoming more well rounded and better able to communicate with one another, there is a major hole in our education that can spell disaster for us in years to come. That void is how to effectively handle money. Most kids don’t even get a lesson in how to balance a checkbook and they certainly don’t learn how to build and protect wealth.

Today’s children need to start learning the essentials of money and money management from the time they are learning to count. An early lesson could be to let the children count the paper money and change from your grocery or gasoline purchases. Show them the different methods of payment—from cash to checking writing to credit cards.

Businesses are already targeting kids, so they need to be schooled in the many facets of money, including earning, saving, debt, credit, investing, and protecting their assets. Some parents do try to give their kids a basic understanding of money by giving their children allowances for regularly doing household chores or paying them for specific jobs, such as washing cars or cutting the grass.

While this does help instill a work ethic that may serve them well as they enter the adult workforce, it’s also important to spend some time with the youngsters in explaining how to use the money they earn. As children get older and have periodic jobs such as babysitting, delivering newspapers or fliers, pet sitting or any other activities for which they receive payment, have them open a savings and checking account to keep track of their money and save up for purchases they may wish to make down the road.

No kidding. It’s important to help your children understand how to handle money, so use money to teach them the basics. Your professional financial advisor can suggest some activities to help with this aspect of their education, which will serve them well their entire lives.

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About the author: About Ronald Bernheim, the owner of Financial Freedom Wealth Management Services, in Chatsworth, CA. He offers a free, no-obligation counseling session to determine whether a financial review or comprehensive plan is indicated. Interested parties may call (818) 626-9498 or e-mail or visit the website at

Disclosure: All information herein has been prepared solely for informational purposes, and it is not an offer to buy or sell, or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy. Securities and Advisory services offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC. The LPL Financial Registered Representatives associated with this site may only discuss and/or transact securities business with residents of the following states: California, Arizona, Florida, Washington