Feb 1, 2025

10 things not to do when teaching kids about money

Teesha Shirodkar

​What to not teach your kids about money?

Teaching kids about money can be a fun adventure! It’s not just about coins and notes, it’s about learning valuable life skills. By making money lessons engaging and interactive, you can help your children understand its importance in everyday life, in this teaching process here are a few things a parent should avoid.

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​Not discussing money openly

Not discussing money with children can leave them unprepared for financial responsibilities. Instead, engage them in everyday conversations about budgeting and spending, such as explaining the costs of groceries while shopping together, so they understand the value of money and its management.

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​Setting a poor example in front of kids

If parents demonstrate poor financial habits, children are likely to mimic these behaviours. Model good financial practices by discussing your budgeting process or showing how you save for family holidays, reinforcing the importance of responsible money management through real-life examples.

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​Not teaching them budgeting skills

Failing to teach children how to budget can hinder their ability to manage money effectively in adulthood. Introduce simple budgeting exercises, like tracking their allowance and expenses in a notebook, so they learn how to balance income and spending from an early age.

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​Making every small decision on how to spend their pocket money

Micromanaging your child’s spending decisions can prevent them from learning valuable lessons about finances. Allow them to make choices with their pocket money and discuss the outcomes together, helping them understand the consequences of their financial decisions this well help them become independent..

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​Constantly forcing them to save money

Forcing children to save can lead to resentment and a lack of understanding about its importance. You must explain the benefits of saving by setting savings goals together, such as saving for a toy they want, making it a fun and rewarding experience that encourages responsible habits.

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​Depending on the school/ teachers to teach

Assuming schools will teach your kids about money can lead to gaps in their financial knowledge. Instead, take the initiative to teach them basic concepts like saving and budgeting at home through fun activities, such as creating a savings jar for their pocket money.

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​Giving them money without any effort

Giving children money without requiring them to earn it can diminish their understanding of its value. Encourage them to do small tasks or chores for pocket money, teaching them that hard work leads to rewards and helping them appreciate the effort behind earning.

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​Not teaching them financial concepts

Many parents worry that their kids won’t grasp complex financial concepts. You can start teaching basic ideas like saving and investing early on using simple language and examples, gradually introducing more complex topics as they grow older so they feel confident about managing money.

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​Not taking them to shopping

Shopping without your children robs them of practical learning experiences regarding spending decisions. Take them along on shopping trips and involve them in discussions about comparing prices and sticking to a budget, helping them learn how to make informed purchasing decisions in real life.

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​Not teaching them about charity

Not talking about charitable giving misses an opportunity to instill values of generosity in your children. Instead, discuss your family's charitable contributions openly, encouraging them to think about ways they can help others, fostering empathy and social responsibility as part of their financial education.

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Thanks For Reading!

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