Growing the Money Mindset: A Guide for Kids

by Briana Marie
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When it comes to financial literacy and cultivating a healthy money mindset, it’s never too early to start teaching children. By introducing money management skills and nurturing a positive attitude towards finances, we can empower our kids to make smart financial choices and set themselves up for a secure future.

Today, we will explore some effective strategies to help your children develop a strong money mindset.

kids doing a garage sale

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Start with Financial Basics

Begin by explaining the basic concept of money to your kids. Introduce them to different denominations, the value they represent, and how money is earned. This foundation will help them understand the importance of saving, spending wisely, and the value of hard work.

The book If Money Doesn’t Grow on Trees, Where Does it Grow? actually does a fantastic job at teaching young kids the basics of personal finance. And it does so in a way that is actually interesting. By the end of this book, children understand the value of money, how to earn, how to save, and how to make their money grow.

Encourage Saving

Teaching children the habit of saving from an early age lays a strong foundation for a healthy money mindset.

Help them set financial goals, such as saving for a new toy or a special outing, and provide them with a piggy bank or a savings account to track their progress. Celebrate their achievements and show them how their savings can grow over time.

You can later expand this concept of saving into the concept of investing for kids.

Introduce Budgeting

Teaching children how to manage money responsibly is a crucial skill. Start by giving them a small allowance or money for completing age-appropriate tasks. Encourage them to allocate their funds wisely by dividing them into categories, such as savings, spending, and giving. This allocation will instill a sense of responsibility and help them prioritize their financial decisions.

You can use allowance apps such as BusyKid to help with this task. BusyKid makes it super easy for your children to earn and manage their money. They even have the option to split their money into different pots already built into the app.

Teach the Value of Giving

As important as it is to save and spend wisely, it is equally important to teach children the joy of giving.

Instill a sense of empathy and philanthropy by encouraging them to donate a portion of their allowance or work earnings to a cause or charity of their choice.

This will help them understand the impact of their actions and foster a compassionate mindset toward others.

Additionally, it encourages children to have a positive impact on the world around them. Tithing allows them to see how they can make a change in their community.

The BusyKid app mentioned earlier also makes it easy for children to find and select organizations to donate to.

Lead by Example

Children learn by observing the people around them. And leading by example is one of the most effective ways to teach your kids about growing the money mindset.

Demonstrate good financial habits by making sound financial choices in your own life. Simple actions like budgeting for household expenses, saving money, investing, and living within your means can make a huge impact on how your child views and handles money.

You should also involve them in age-appropriate discussions about money and explain how certain decisions are made.

By introducing financial literacy concepts like saving, budgeting, investing, and understanding interest rates, you can help your child become more financially responsible as they grow up.

Teaching your child the importance of earning and saving money also needs to be balanced with instilling positive attitudes towards money.

Encourage your child to always be grateful for what they have, and avoid fostering a culture of entitlement or materialism.

Introduce Entrepreneurship

Another great way to nurture a money mindset is by encouraging children to explore their entrepreneurial skills. Support their passion for starting a small business, whether it’s a lemonade stand, a crafts stall, or an online store. This will teach them the value of hard work, creativity, and money management from a practical perspective.

The children’s book If Money Doesn’t Grow on Trees, Where Does it Grow? mentioned earlier is a really great way to introduce children to the concept of entrepreneurship early on. This book follows the main character, Julius, as he works to grow his money in hopes of purchasing a trendy new toy that has hit the market. In the process, he dives into the world of entrepreneurship as one of his strategies to “grow his money.”

Emphasize the Importance of Education

Educate your children about the correlation between education and financial success. Encourage them to invest in their knowledge and personal growth.

Teach them that acquiring new skills, pursuing higher education, and seeking opportunities to learn can lead to better career prospects and financial stability later in life.

It’s also important to emphasize that they don’t necessarily have to spend or have access to a ton of money to further their education. There are so many ways to educate oneself without breaking the bank. This could be as simple as reading books from your local library, attending a webinar, enrolling in trade school, networking, etc.

With knowledge comes opportunity. And more knowledge leads to more opportunities. So it’s important to emphasize always expanding one’s knowledge as an important part of the money mindset.

infographic-cultivating a healthy money mindset

Wrapping Up

Growing a money mindset in children is a vital aspect of their overall development. By starting early and employing helpful strategies, we can equip them with essential financial skills and a positive attitude toward money.

Empowering kids to become responsible money managers will not only benefit them individually but will also set them on the path to financial independence and success in the future.

Feel free to check out the vast amount of personal finance resources and tips on Major League Mommy. And don’t forget to check out the resources mentioned in this article to start leading your child to the path of financial success.


  • Briana Marie

    Briana Marie is a mental health and financial literacy advocate, and founder of Major League Mommy. In her spare time, Briana enjoys yoga, travel, and spending time with her Husband and two daughters.

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