Kids learn about money long before anyone sits them down for a lesson. They notice how we talk about bills, what happens at the checkout line, and whether giving feels like a joy or a chore. That means every family is already teaching money habits. The question is whether we are doing it on purpose.
In this article I share a simple, age-by-age plan for teaching children to work, give, save, and spend wisely. None of it requires a big income or a perfect budget. It just takes a little intention and a lot of patience.
Start With Work
Before kids can manage money, they need to understand where it comes from. Elder Marvin J. Ashton put it this way:
“One of the greatest favors parents can do for their children is to teach them to work.”
Elder Marvin J. Ashton, “One for the Money,” Ensign, July 1975
Many families separate everyday chores that everyone does because they are part of the family, like making beds and clearing the table, from extra jobs that can earn a little money, like washing the car or weeding the garden. However you set it up, the goal is the same: children learn that money is connected to effort.
Give, Save, Spend: The Three Jar Method
One of the easiest tools for young children is a set of three clear jars (or envelopes) labeled Give, Save, and Spend. Each time a child earns money, they divide it among the jars.
- Give. This is where tithing and fast offerings start. Let your child fill out a donation slip with you and hand it to a member of the bishopric, or help them see their contribution made online. Paying a tenth of a few dollars is a small amount, but the habit it builds is anything but small.
- Save. This jar is for a goal that takes time, like a bike, a gift for a sibling, or a future mission.
- Spend. This money is theirs to use, and that includes the freedom to make a choice they later regret. A disappointing toy purchase at age six is a cheap and valuable lesson.
Clear jars matter for little ones. Watching the coins pile up makes saving real in a way a number on a screen cannot. My article on budgeting for tithing and fast offerings explains how adults can keep giving first, and the same idea works beautifully for kids.
Money Lessons by Age
Every child is different, so treat these as rough guides rather than rules. In the same article, Elder Ashton gave counsel that is a good way to think about pacing: “Teach children to make money decisions in keeping with their capacities to comprehend.” (source)
Ages 3 to 6: Seeing and Counting
- Name coins and bills and play simple store games at home.
- Use the three jars, even if the amounts are tiny.
- Let them hand money to a cashier and receive change.
- Talk out loud about simple choices: “We could buy this now, or save for the zoo trip.”
Ages 7 to 11: Choosing and Waiting
- Introduce earning opportunities for extra jobs.
- Set a savings goal that takes a few weeks or months to reach.
- Let them compare prices at the grocery store and find the better deal.
- Open a simple savings account and visit it together.
Ages 12 to 15: Planning and Budgeting
- Give a small monthly amount for a category they manage themselves, like clothing or activities, and let them feel both the freedom and the limits.
- Teach them to write a simple budget with income, giving, saving, and spending.
- Talk about how interest works, both when it helps savings grow and when it makes debt expensive.
- Start a mission savings plan if they hope to serve.
Ages 16 and Up: Practicing Independence
- Help them manage income from a first job, including giving and saving before spending.
- Walk through a real paycheck together, including taxes and deductions.
- Discuss credit cards, loans, and why avoiding debt matters. My guide to paying off debt as a family can be a good conversation starter.
- Let them help plan a real family expense, like a grocery week or a vacation.
Bring Kids Into Family Budget Councils
Children learn a lot by simply being included. Elder Robert D. Hales taught that reviewing a family budget together in family councils has a lasting benefit:
“This will teach our children to recognize the difference between wants and needs and to plan ahead for meaningful use of family resources.”
Elder Robert D. Hales, “Becoming Provident Providers Temporally and Spiritually,” April 2009 general conference
You do not need to share every detail of your finances with young children. Instead, invite them into age-appropriate decisions. Let them help choose between two family activities based on cost, plan a meal within a set amount, or track progress toward a shared goal. The free family budget worksheet has room for a short family discussion, and older kids can help fill it out.
Save Together for Something Meaningful
A vague instruction to “save your money” rarely sticks. A specific goal does. Elder Ashton noted:
“Family unity comes from saving together for a common, jointly approved purpose.”
Elder Marvin J. Ashton, “One for the Money,” Ensign, July 1975
A family goal might be a trip to see grandparents, a new board game, or a contribution to a sibling’s mission fund. Some parents also offer to match part of what a child saves toward a big goal, which makes the reward of waiting feel even sweeter. If a mission is on the horizon, my guide to saving for a mission breaks the goal into manageable monthly amounts.
Let Them Practice With Real Tools
As kids grow, it helps to move from jars to the same kind of tools adults use. A simple notebook ledger works well for many children. Teens who are comfortable online may enjoy a digital envelope budget where they can see each category fill and empty. EnvelopeBudget.com is the tool I use for envelope budgeting, and the same envelope idea translates easily from jars on a shelf to categories on a screen.
Whatever tool you choose, the principle stays the same: every dollar has a job, and giving comes first.
Mistakes Are Part of the Lesson
It is tempting to rescue kids from every bad money decision. Resist that urge when the stakes are small. A child who spends all their savings on something that breaks a week later learns more than any lecture could teach. Afterward, talk through it kindly: What would you do differently next time? What did you learn?
The same goes for us as parents. Kids do not need to see a perfect example. They need to see an honest one, where we plan, adjust, and keep trying.
Teaching Kids About Money Checklist
- Connect money to work with age-appropriate jobs
- Set up Give, Save, and Spend jars or envelopes
- Help your child pay tithing on what they earn
- Set one savings goal that takes time to reach
- Match lessons to your child’s age and understanding
- Include kids in simple family budget council decisions
- Let small mistakes become teaching moments
- Move older kids toward a real written budget
Closing Thoughts
Teaching children about money is really about teaching them to work, to give generously, to plan ahead, and to make choices that match what matters most to them. Those lessons will follow them into missions, marriages, and homes of their own.
Start small this week. Find three jars, label them together, and let your child decide where their next dollar goes. If your own family budget needs a fresh start first, my guide to a simple family budget is a good place to begin.
