As a parent, you want to give your kids the knowledge and tools they need to thrive — and that includes teaching them about money. Many tools and resources are available to help parents raise kids with the skills necessary to achieve financial wellness later in life. Among them, How to Raise Financially Fit Kids Today, by MilSpouse Money Mission, provides suggestions, rationales, and tools focused on military families.  

By introducing budgeting and financial lessons in age-appropriate ways, parents can help build their kids’ healthy habits and confidence with money from the start. Below is a useful checklist that outlines key topics, tips, and tricks you can use to introduce good financial habits to your children at any age.  

Early Childhood, Ages 3-7 

Young kids can learn the basics of saving and spending through simple activities. Using a clear jar or piggy bank is a tangible way to help them see their money grow over time as they choose to save their earnings. If you have a garage sale, explain that while 20% of the profits will be put into their savings, the remaining amount will be theirs to spend. This will set the stage for their understanding of what it means to save and spend.  

Quick Take: 

• Save in ways that can help your kids see their money grow. 
• When your kids earn or receive money: 
  • Save 20% 
  • Spend the rest on something fun 
• Keep lessons visual and simple so they easily understand saving versus spending. 

Tween Years, Ages 8-12 

As they get a little older and more independent, kids can better grasp the idea of earning, saving, and budgeting by receiving a small allowance for completing chores. You can show them how to divide their money into categories: Spend, Save, and Give. It’s a good time to introduce them to the idea of setting financial goals — such as saving for a toy or game — and celebrating when they reach it to keep the motivation and momentum going.  

Quick Take: 

• Provide a small allowance for chores. 
• Show your kids how to divide their money as: 
  • Spend 
  • Save 
  • Give 
• Help them set short-term savings goals and celebrate achievements. 

Teenage Years, Ages 13-18 

Older children who are ready for more responsibility can open a simple savings or checking account. Talking with them about family expenses, such as groceries or gas, will enable them to see real-world costs as well as understand the benefits of budgeting. Encourage them to create a budget for wants vs. needs and, if they have a job, guide them on how they can easily save a portion of their paycheck using the 50/30/20 rule — 50% goes to needs, 30% to wants, and 20% to savings and paying off debt.  

Quick Take: 

• Open a savings or checking account for your teen. 
• Talk about real family expenses, like groceries, gas, and bills. 
• Teach budgeting for wants vs. needs. 
• If they earn income, introduce the 50/30/20 rule: 
  • 50% Needs 
  • 30% Wants 
  • 20% Savings/Debt 

Young Adult Years 

As your children transition to adulthood, college age, and beyond, discuss credit cards, loans, and interest rates. Make the topic of money personable by sharing your own financial experiences — including both successes and mistakes. These lessons will be relatable and more memorable than simply providing facts and figures. Encourage your grown kids to create a monthly budget that covers daily living essentials, from rent and food to savings, while still leaving room for enjoyment.  

Quick Take: 

• Teach your children about credit cards, loans, and interest. 
• Share your financial successes and mistakes. 
• Encourage creating a monthly budget for: 
  • Rent and bills 
  • Food 
  • Savings 
  • Fun/Entertainment 

The Big Picture 

Money lessons are learned and become a habit with time. A single conversation won’t secure the future, so keeping an open dialogue about finances in age-appropriate and practical ways will help you give your children the tools they need to make smart financial choices. 

Quick Take: 

• Keep money talks age-appropriate and ongoing. 
• Make conversations practical and relatable. 

We’re Here for You 

For more tips on how to budget as a family, contact an Armed Forces Mutual Member Benefits Coordinator at 800-522-5221 or email [email protected]. We are here to help foster a positive experience around financial education and your family’s well-being.