Financial Tips for July: Teach Kids About Money

July is a great time to focus on building healthy financial habits within your family. Teaching kids about money early in life can set them up for long-term success and help them develop the skills needed to make smart financial decisions as adults. Financial literacy is not typically taught in school, so parents and guardians play a key role in shaping these habits.

Here are three effective ways to start teaching kids about money.

1. Set Up an Allowance System

An allowance can be a powerful tool to teach kids the basics of earning, saving, and spending. It helps children understand that money is a limited resource and requires thoughtful decision-making.

How to implement:

• Tie allowance to chores or responsibilities

• Encourage saving a portion of what they receive

• Let them make small spending decisions to learn from experience

💡 Tip: Use the “save, spend, give” method to help kids allocate their money and understand different financial priorities.

2. Open a Youth Savings Account

Introducing children to a bank account helps them understand how money grows and builds familiarity with financial institutions.

Benefits include:

• Learning how deposits and withdrawals work

• Watching savings grow over time

• Developing a habit of setting money aside

💡Tip: Review the account together regularly to reinforce the importance of saving and tracking progress.

3. Encourage Smart Spending and Goal Setting

Helping kids set financial goals teaches patience and delayed gratification - two essential skills for long-term financial success.

Ways to teach this:

• Help them save for a specific item they want

• Discuss needs vs. wants

• Celebrate when they reach their savings goals

💡 Tip: Use real-life examples, like shopping trips, to explain budgeting and value-based spending.

Teaching kids about money is one of the most valuable lessons you can pass on. By introducing basic concepts like saving, spending, and goal setting early, you help build a strong financial foundation that can last a lifetime.

At BFG Wealth Management, we believe financial education starts at home. For more resources and guidance, visit bfgwm.com.

Disclosures: Investment advisory services offered through BFG Wealth Management, a Registered Investment Advisor. This material is for informational purposes only and should not be considered personalized financial advice. Please consult your insurance, financial, or tax professional regarding your specific circumstances.

---

Subscribe for more articles like this!