ON THE MONEY > LIBRARY > FINANCE > TEACHING KIDS ABOUT MONEY
Get Your Kids Started on the Right Financial Path
Where to Start
Think of it like a video game: you're giving them the cheat codes early. Teaching kids about money isn't just about saving for a rainy day; it's about giving them the tools to understand how money works in the real world. By introducing concepts like earning, saving, and spending, you're helping them build a foundation of financial independence that'll pay dividends for their whole life. You're setting them up to be financially smart adults who can make confident decisions and avoid common money traps.
Money Skills by Age
Financial literacy is a marathon, not a sprint. Start early, stay consistent, and guide your kids toward independence to help them form habits that will set them up for lifelong financial success. Having regular conversations about managing money as they grow is the best way to ensure a strong financial future.
The Early Years
Coins and Bills – Show and teach them the names of each coin and bill and how they can count them.
Play Store – Use pretend play like grocery shopping or paying for that delicious cup of tea to model buying and selling.
Piggy Banks – Start the habit of setting money aside with a piggy bank. Saving is a valuable lesson to start teaching early.
Elementary Level
Allowance – Earning money by doing simple chores teaches the connection between work and money.
Needs vs Wants – Discuss the difference between a need (food) and a want (games) as a foundation of budgeting.
Saving Jars – Use dedicated jars or envelopes to divide money into the three categories: spend, share, and save.
Middle School Boss
Digital Money – Discuss online banking, digital wallets, and payment apps, emphasizing security and safe usage.
Budgeting – Teach them how to budget by balancing their immediate spending desires with their future savings goals.
Banks – Explain the concepts: savings accounts, how interest works, and why banks are the secure place to keep their money.
High School Hustle
Subscriptions – They need to know these recurring payments add up and why they must be factored into their budget.
Big Purchases – Show them how to set a savings goal for big purchases and create a plan that spans months, not days.
Next-Level Learning – Introduce responsible credit card use, how interest rates work, and why borrowing money isn't "free".
Basic Savings
A savings account is a great start to teaching your child some of the basics of money management. Building smart money habits at a young age helps kids gain valuable skills that set them up for success as they grow.
At Redstone, we encourage the popular Spend, Save, Share method. Every time money is received, it's divided among the three containers according to a chosen percentage, typically 50% spend, 30% save, 20% share.
Spend
The key is to teach your child how to spend wisely. Involve your child while out shopping. Include them in making spending decisions and help them understand the reasons behind these choices.
Share
Talk to your child about budgets and encourage them to create their own. Help them understand that even though you can’t buy everything you want, saving and planning for a future goal is rewarding.
Save
Sharing with those less fortunate is fulfilling and valuable. Let your child find a charity they like and help them find ways to donate time, money, and resources to help others.
Youth Checking
Around the age of 13, your child’s financial training wheels are ready to come off. Most banks will let you open them their own checking account and debit card, which is critical for their financial fluency. This is the official transition from their Spend, Save, Share jars to real-world money management.
Accounts like Redstone’s Safeguard Checking are designed with kids and parents in mind. The debit card is a tool for learning, not debt – it helps them manage their own money without the risk of racking up overdraft fees. For those pivotal 13- to 15-year-old years, parents are a mandatory joint owner. This gives you full visibility and control to guide their first big financial moves – direct deposits from a summer job, their first online purchase, or navigating a return. While older teens (16+) technically could go solo, keeping a joint owner on the account is strongly recommended. You're giving them the independence they crave while still being the backup they need for big decisions or emergencies.
Make Financial Education Fun
If you want your teen to learn about money without giving you an eye-roll, ditch the dusty textbook. The Zogo app makes financial education gamified, low effort, and immediately rewarding. Zogo (found inside online banking or the mobile app) is basically a Duolingo-style approach to personal finance. It turns complex topics like budgeting, saving, and even investing into bite-sized, mobile-first lessons.
This isn't just about learning; it's about earning. They complete the interactive challenges and quizzes to rack up points, which they can redeem for actual gift cards to places like Amazon, Target, and Starbucks. It literally pays them to learn! By leveling up in Zogo, they're building the foundation for sound financial decisions, meaning you'll spend less time stressing about their future 401(k) and more time enjoying the peace of knowing they're financially competent. It's a win-win for their long-term stability and your short-term sanity.
Additional Resources
Youth Savings
Open a savings account for your child and set them up for a brighter financial future that pays off in a big way.
Redstone Checking Accounts
Choose from three accounts that are packed with convenient tools to help you manage your finances anytime, anywhere.
The Basics of Personal Finance
Mastering your personal finances can be empowering, helping you build a secure future to live the life you want.