3 Ways to Keep Good Money Habits

Financial Literacy For Kids: Refresh or Start Good Money Habits

Updated April 27, 2023

Setting goals for better money habits? Let’s start small, prioritize what’s important, and make simple changes that will ensure a brighter financial future for our families.

3 Tips for Good Money Habits in Your Family

1. Start small and be specific

The key to resolutions we actually keep is to start small and be specific. A “Family Funds Jar” can help kids see firsthand their progress towards a mutually agreed upon financial goal.

Whether it’s as reasonable as a trip to the ice cream shop or as ambitious as a day at the amusement park, every member of the family can contribute spare change, allowance dollars or funds earned from odd jobs around the house to reach the family’s financial goal.

A simple, clear jar on a kitchen counter can go a long way in teaching kids the power of goal setting, delayed gratification and reaping the rewards of their collective hard work.

2. Reset the Allowance-giving routine

Any other parents fallen off the allowance bandwagon? 😬 Now is the perfect time to reset the allowance-giving routine in any household.

By making allowance a regular part of family life, parents are starting a conversation around money that will pay off far into the future. Not only do kids gain confidence and competence in pitching in around the house, but allowance lets kids quietly build the money-smart habits for life.

3. Get your kids to start investing their money

When it comes to investing, time is money. The sooner kids get started investing, the more their money grows.

Whether it's starting an investment account at a local bank (Charles Schwab, Fidelity, and T.D. Ameritrade allow customers to open custodial accounts for minors) or signing up for an investing app like Early Bird, parents can take just a few minutes to set their kids up for investing success.

From small financial gifts to allowance contributions, the sooner those dollars are invested…the more they’ll grow. When it comes to kids, it is never too early to start investing in their future.

Here are some investing best practices to keep you and your child on the right track.

Now is a Good Time to Start

It’s always a good time to refocus on what matters most. If parents can tackle any or all of these steps to better money habits, kids will develop better money habits and build their financial literacy skills. Start your kid off on the right financial foot.

What is a family financial goal that you’d like to work towards this year? Let’s brainstorm over dinner tonight.