🧒💰TOPIC 17: HOW TO TEACH KIDS ABOUT MONEY (EVEN IF YOU’RE NOT A PRO)

 

👪 INTRO: MONEY LESSONS START AT HOME

Most of us didn’t grow up learning how to budget, save, or invest—and now we want better for our kids. But what if you’re not a finance pro? No worries. Teaching kids about money is more about consistency, honesty, and modeling good habits than knowing everything about the stock market.

Whether you’re a busy parent, guardian, aunt, uncle, or older sibling, this guide will give you practical, age-appropriate ways to help the young ones in your life become money-smart for life.

🧠 WHY START EARLY?

Studies show kids form money habits as early as age 7 (Cambridge University). Waiting until they’re teens might be too late to influence how they think, spend, and save.

 Real-Life Insight: Ruth, a mom of two in Nakuru, started giving her kids mini-allowances with savings jars. Today, her 10-year-old son already understands delayed gratification.

Cambridge study on kids and money habits 

🧩 12 REALISTIC WAYS TO TEACH KIDS ABOUT MONEY (EVEN IF YOU’RE NOT A PRO)

1. Talk About Money Openly (Not Secretly)

Don’t treat money like a taboo. Let your kids hear you talk about budgeting, saving for a goal, or choosing between two items in a supermarket.

📌 Example: At the grocery store, say, “We have KSh 1,000 today, so let’s choose what we need most.”

✔️ Why It Works: It builds awareness and decision-making skills early.

2. Give an Allowance—But Tie It to Tasks or Goals

Instead of free money, link pocket money to age-appropriate chores or behavior (e.g., completing homework, helping clean up).

📌 Example: KSh 20 for sweeping the living room, KSh 30 for washing dishes. Create a simple reward chart.

✔️ Why It Works: It teaches that money is earned, not just handed out.

3. Use the Clear Jar Method

Forget piggy banks. Use transparent jars labeled “Spend,” “Save,” and “Give” so kids can see money growing or shrinking.

📌 Example: A child places KSh 10 in the “Save” jar every week and watches it grow toward their toy goal.

✔️ Why It Works: Visual learning helps young children understand concepts better.

4. Make Saving a Game

Turn saving into a fun family competition or visual tracker with stickers, stars, or goal sheets.

📌 Example: Print a simple chart with 10 steps. Each step = KSh 50 saved. Fill it in together and celebrate the final goal.

✔️ Why It Works: Gamifying finance makes it less boring and more motivating.

5. Let Kids Make (Small) Spending Decisions

When they receive birthday money or allowance, let them decide what to buy—with gentle guidance if needed.

📌 Example: If your child wants a toy that’s overpriced, let them choose it once and experience the regret. Next time, they'll think twice.

✔️ Why It Works: Experience is the best teacher.

6. Explain Needs vs. Wants (Practically)

Teach kids the difference between what we need (food, shelter, clothes) and want (toys, sweets, gadgets).

📌 Example: While shopping, ask, “Is this something we need or want?”

✔️ Why It Works: This builds critical thinking and self-control over impulse buying.

7. Use Storybooks and Cartoons About Money

Leverage relatable stories and characters to make financial lessons fun.

📚 Recommended Resources:

"Rock, Brock, and the Savings Shock" by Sheila Bair

MoneyTime (interactive game for kids)

Biz Kid$ (TV series on YouTube about money for kids)

✔️ Why It Works: Storytelling connects emotionally and improves memory retention.

8. Create Simple Savings Goals Together

Set small, realistic goals for something they want. Help them break it down.

📌 Example: If a toy costs KSh 500, and they save KSh 50/week, it’ll take 10 weeks. Use this to teach time and consistency.

✔️ Why It Works: They learn patience and planning.

9. Let Older Kids Open a Real or Mobile Savings Account

Once they’re around 10–13, introduce real accounts like:

KCB Goal Account

Stima Sacco Junior Saver

✔️ Why It Works: Real banking builds responsibility, even for small amounts.

10. Use Daily Life as a Classroom

Turn everyday moments into money lessons: bills, electricity, shopping, or travel.

📌 Example: Show your child the electricity token meter and explain how much each unit costs.

✔️ Why It Works: Kids learn better when lessons are tied to real life.

11. Model Good Financial Habits Yourself

Kids copy what they see. If you budget, save, and talk positively about money, they will too.

📌 Example: Show them how you track spending on Monefy, Money Manager, or Google Sheets.

✔️ Why It Works: Leading by example always wins.

12. Be Honest About Mistakes (Yours and Theirs)

If you made a poor money choice, share it age-appropriately. Let your kids know mistakes are part of learning.

📌 Example: “I once used a mobile loan without thinking, and it cost me so much in fees. Now I plan better.”

✔️ Why It Works: It creates trust and normalizes learning through experience.

🧠 QUICK RECAP: MONEY LESSONS KIDS NEED (AND YOU CAN TEACH)

💡 Money Lesson 🛠️ How to Teach It

Money is earned – You can teach this by linking chores to allowances. For example, give your child small payments for age-appropriate tasks like sweeping, making the bed, or helping with dishes. This reinforces that money doesn’t come for free—it’s earned through effort and contribution.

Save before spending – Reinforce this by encouraging your child to use “Save” jars or beginner-friendly bank apps. Seeing money accumulate over time before they spend it teaches the value of discipline and prioritizing long-term satisfaction over instant gratification.

Delayed gratification – Teach this by helping them set saving goals, like buying a toy or paying for an outing with their own money. Break down the goal into weekly savings targets so they understand that good things take time.

Budgeting basics – Introduce budgeting by involving them in small shopping plans. For instance, give them a set amount (like KSh 200) and ask them to help choose which items are most important. This builds decision-making and planning skills.

Value of giving – Add a “Give” jar or volunteer together to show that money isn’t just for self-spending. Teaching generosity early helps build empathy and social responsibility.

Financial independence – Help older kids take a step toward independence by opening junior savings accounts like those at KCB or Stima Sacco. Even small deposits can make a big difference in teaching accountability and the basics of banking

 

🔗 RELATED POSTS ON THIS BLOG YOU CAN ALSO CHECK ON:

How to Start Saving on a Tight Budget

Daily Money Habits That Lead to Wealth

Financial Mistakes to Avoid in Your 20s

budget-templates-you-can-use-right-now.

🎯 FINAL TAKEAWAY

You don’t need to be perfect—you just need to be intentional. Teaching your kids about money is one of the most powerful gifts you can give them. It builds confidence, responsibility, and a solid foundation that lasts a lifetime.

 💬 “If we want our kids to live better, let’s give them the tools—not just the cash.”