2 weeks Ago By Dr. Jade L. Ranger
When our older son, Jacob, turned 9, he asked us what he should do with all the money in his piggy banks. At that point, he had three different piggy banks in his room — each stuffed with cash he had saved from birthdays, holidays and rewards for good grades. He was running out of space and wanted to know if we’d buy him another piggy bank.
Jacob’s question prompted us to make an appointment at our local bank, where we decided it was time to help him open his first checking and savings accounts. Before our visit, we sat down and talked to him about the importance of spending and saving wisely, introduced the concept of credit and explained the difference between good and bad credit. Of course, we broke everything down in a way that a 9-year-old could understand.
Jacob was excited about his trip to the bank, and when our appointment came, we were grateful for the associate who took the time to explain how checking and savings accounts worked. He was patient and answered all of Jacob’s questions. We split the $508 Jacob had saved, placing half in his new checking account and half in his savings.
As parents, it’s never too early to teach children about financial literacy. It’s a skill that can set them ahead or leave them significantly behind — and the impact will follow them throughout adulthood. Teaching responsible money habits during childhood is one of the best ways to prepare your kids for life.
April is National Financial Literacy Month, making it the perfect time to start this conversation at home. It begins with laying a strong foundation in early childhood, continues with empowering financial independence in young adulthood and is reinforced by modeling stewardship as parents. Every family may approach it differently, but introducing children to the concepts of money and responsible spending should be at the core of these early lessons.
Whether you use an allowance system, reward chores or teach through play with toy cash registers, shopping games or pretend banks, the goal is to instill the basics: saving, spending and sharing — tailored to your family’s values and budget.In a previous column, I shared that my parents didn’t give my sister and me an allowance growing up. My father didn’t believe in paying children to do what was already expected of them.
However, our parents still emphasized the importance of budgeting and living within our means, rather than overspending to “keep up with the Joneses.” That lesson, resisting comparison based on material possessions or social status, has stayed with us and helped us remain financially grounded as adults.While my husband and I decided to implement an allowance system with our boys to help them practice money skills early on, the goal remains the same: children who understand financial literacy are more likely to become financially stable adults.
I’ve even convinced my father that our approach is a worthwhile investment. He now laughs about how our parenting styles may differ, but he appreciates that the core values he instilled in me are being passed down to his grandchildren. At the end of the day, we both agree — teaching our children about finances is essential.
Once the foundation is set, it’s time to build on it by preparing kids for the real world. This includes helping them open and manage checking and savings accounts, having age-appropriate conversations about student loans, budgeting and credit scores, and encouraging responsible credit card use. It also involves teaching them how to set financial goals and understanding the difference between needs and wants.
For example, if your teenager wants a cellphone or a car, they should be involved in the process — not just as recipients, but as contributors. While it’s OK to help them with big purchases, they should share in the cost. Even before these major asks, we’ve made our boys use their own money to buy things like toys or video games.
They quickly learn how to weigh the value of their purchases — it’s funny how fast kids start distinguishing between needs and wants when it’s their own money on the line! This process gives them a chance to put your financial lessons into practice. Because practice makes progress, it’s important to ensure they’re practicing healthy habits now — before poor habits lead to major headaches later in life.As the saying goes, children are always watching and listening.
If our actions don’t align with our words, we’re sending mixed messages. While some kids may grow up determined not to repeat their parents’ financial mistakes, others will mimic what they’ve seen. That’s why it’s essential to model sound financial behavior — budgeting, saving, giving and learning from mistakes — in a transparent and age-appropriate way.
In our household, our older son is a natural saver, while our younger son can’t wait to spend whatever he gets. As parents, it’s our job to meet them where they are and guide them individually to financial success. That means keeping financial literacy as an ongoing conversation in our home, not a one-time lesson.
Dr. Jade L. Ranger is a pharmacist at The Prescription Shoppe, a full-service pharmacy she owns with her husband.
She is mom to two boys, ages 11 and 7 years old, and author of “Mustard Seed Mentality,” available at Amazon.com..
