How To Raise Financially Responsible Children

Good morning Beautiful Women Supporting Women,

Happy Monday to you all!  I hope you had a fantastic weekend.  I spent mine educating the community at the Twelve Tribes of Judah’s Annual Health Fair on Saturday and on Sunday, I celebrated my birthday.  I proudly boasted about my almost AARP status to anyone who listened…..OR cared :-).   Truthfully, I’ve been blessed to see another year and blessed to be able to continue educating the community.

Two weeks ago, I introduced the FIRE community to the group.  Sharing their concepts on how to retire early, as they aggressively saved their income, increased cash flow and minimized expenses.  Today, I wanted to start with our youth.  If we can educate our children about money in the earlier stages of life, they have a better chance of handling money  matters in the future.

Prior to this, I worked for Citibank for 20 years.  At the time I started, I didn’t have children, so I was young and carefree.  Three years in, I gave birth to Jaden.  I wanted to give him the world, but most of all, I wanted him to build an empire of his own.  So I started to think of what age I should introduce the concept of money and the importance of saving it.  I asked myself, “how do I break the cycle of struggle with the next generation?”

Since I worked in the financial industry, here are some ideas that I found helpful and implemented:

  • Open up a savings account –  When Jaden was born, I set up a passbook savings account – Do you remember those?  You would have to go into the bank with a filled out deposit slip AND your passbook. This is how you kept a running total of your deposits and withdrawals.  Every time he would receive money for his birthday, holidays, chores, etc…. we would take a portion of it and put it into the account.  Later on in years, this same learned behavior as a child, still exists today. (I don’t think banks offer passbook accounts anymore BUT you can open a savings account with no ATM card.  This way the money is not easily accessible)
  • Wants versus Needs – Everyone WANTS to buy that new outfit, those new sneakers, that new car but do we necessarily NEED these things?  Teaching children the difference between the two can help them to become more conscientious when making purchasing decisions.  Questions like “should I buy sneakers or food, or should I buy that $1000 outfit or pay to have a roof over my head?” I know this may sound extreme but adults go through the same struggles.  Show them the importance of making the most logical decision.
  • The Good Ole’ Piggy bank –  When our children get older, we usually start to send them to the store by themselves and tell them to bring back our change!!  Believe it or not, this is another teachable moment about money.  Instead of taking the change back, have them put it in their piggy bank.  The children love to see the money growing until it is overflowing  from the top.  When they see this, it entices them to save more.  Buy a nice sized piggy bank and let the change roll in.  When they count all of the money that they’ve been saving for a few months, they will start to get the gist of having money.

Side Note: I still use a my Mickey Mouse piggy bank from over 40 years ago!

We should reward the children for doing a good job at saving.  Allow them to buy something they like but make sure their funds are not being depleted.

Here are other suggestions that you can use to raise financially responsible children:

11 Tips to Raise Financially Savvy Kids

Next Week: So our financially responsible children have graduated from high school and are about to enter college.  They are asked to apply for a credit card.  What should they do?  We will discuss The Power and Pitfalls of Having a Credit Card in College.

If you have any  additional questions or comments, you can post them here or send via email at:

As always, thank you for reading.

Have a beautiful and blessed week!


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