5 (Not Boring) Ways to Teach Your Kids About Money

Cost of lemonade after inflation: $7.75/cup.

Sep 21, 2024

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“Dad,” my daughter said to me one day.

“The kids at school say we’re rich.”

I think every parent knows that feeling after your kid hits you with a relatively serious question you didn’t expect.

You’re surprised, then a little apprehensive, then proud that they’re asking you hard enough questions that could potentially make you look stupid.

Then, you just try to answer as best you can.

We talked about hard work and success, and why she sees Mom and Dad running businesses together — and how not every kid sees that. We talked about education and opportunity and saving vs. investing.

And when I got home that night, I realized there was a lot more to talk about. Not just with her, but with my other 2 kids, too.

Financial literacy is one of the most important skills you can teach your kids. Right now, my 9 and 10-year-old daughters and I are reading “Rich Dad Poor Dad for Teens” together.

And even though books and open conversations are a good start…

They’re a little boring (even for me). So today, I’m sharing 5 other ways you can teach your kids about financial literacy…

Without them telling you you’re the lamest person on the planet.

(Hopefully).

1. Run a Family ‘Shark Tank’

Moms and Dads: Congratulations! You’re now billionaire investors with the power to finance (or crush) the entrepreneurial spirits of the next generation.

Have your kids come up with a business idea, and help them create a “pitch” to sell that idea to potential investors. Beyond just being a great lesson and exercise in entrepreneurship, it also helps promote public speaking skills, sales, and the value of a good business plan.

Bonus: Once you’ve listened to your kids’ pitches, flip the script. Come up with a few business ideas of your own and have them decide whether or not to invest. Then, have them explain the reasoning behind their decisions.

2. Host a Family Auction Night

Kids not fighting enough? They will be when your youngest outbids your oldest on two tickets to “The Phantom of the Opera”.

(Just kidding, we’re in North Dakota. Maybe college hockey tickets.)

Put together a collection of different experiences, privileges, or small items. Give every family member an initial budget and let them manage their “‘wealth” to outbid others.

Include high-value luxury items (like a special family outing) along with essential items (like dinner for the week) to highlight the importance of luxuries vs. necessities.

Family auction nights are great for helping kids understand scarcity, budgeting, and decision-making… And for threatening to let your kids go hungry if they don’t give you your own money back through an auction.

3. Buy and Flip an Item Together

Garage sale season is almost in the rearview, but thrift stores or Facebook Marketplace are also great options for this.

Take your kids through the process of buying something underpriced at a garage sale or online, then reselling it for a profit.

Let them choose the item, decide on pricing, and handle the sale. Talk about the value of good marketing, and see if they can come up with more enticing ways to position the item as they look to flip it. Beyond just value creation, flipping items can help your kids learn about negotiation and market demand.

4. Donate to Charity Together

My wife and I are big believers in teaching skills for investing and growing wealth, but stressing the value of using money for good is just as important as emphasizing wealth accumulation.

Have your kids pick a charity they’re interested in, and discuss your own practices for charitable giving. Donate to their charity together, and talk about how that money will be used — and how charitable donations could affect your tax situation.

If you want to get advanced, you can even work together to set up a mini charitable giving plan where they donate a small percentage of their savings, earnings, or allowance toward causes they care about.

5. Start a Mini-Business Together

Is any lesson in childhood financial literacy really complete without the lemonade stand?

You could also consider things like:

• Homemade arts and crafts.

• A dog walking service.

• Raking leaves.

The business itself isn’t the important part.

Instead, put an emphasis on giving your kids ownership around the planning, marketing, and sales of their business. Teach them that they can charge way more than they should because adults are suckers who will take any excuse to support young entrepreneurs (again, kidding).

In our household, we’re big believers in entrepreneurship, so we want to take every opportunity to encourage our kids to experience the benefits of starting their own business firsthand.

In the end, it’s all about making it fun. Or, at least, not like pulling teeth from a moody alligator.

I’m always curious about what other parents are doing.

What “fun” ways do you teach your kids about financial literacy?

Let me know in the comments below.