Summer is almost over, and kids will be heading back to school in a few short weeks. As they dive back into reading, writing, math, science and other subjects, this is also a good time to give them a hands-on lesson in managing money.
A University of Cambridge study found that children typically form habits around money and spending by age seven. Additional research shows that parents, not friends, are a child’s biggest influence on their attitudes and behavior with finances.
Here are five sustainable money habits you can teach the young people in your life now, so they’re set up for financial success later in life.
Save a Portion of All Money Received
Age-Appropriate Starting Point: Age 5+
Encourage kids to set aside a percentage of all money they receive—whether from allowances, gifts, or part-time jobs. A simple breakdown could be the 50/30/20 rule: put 50% towards spending, 30% into savings, and 20% for giving or donating. You can alter these percentages based on your child’s age or amount of money received.
Money Lesson Learned: It builds a lifelong mindset of saving before spending.
Set and Track Financial Goals
Age-Appropriate Starting Point: Age 8+
Teach kids to set both short-term and long-term goals. Short-term goals can include saving up for a new toy, book or trip for ice cream. Long-term goals could be saving for a bike, vacation spending money, even college. You can help them track their progress in a notebook or app.
Money Lesson Learned: Learning to delay gratification and plan purchases is key to avoiding impulse buying as an adult.
Develop and Use a Budgeting System
Age-Appropriate Starting Point: Age 10+
Introduce simple budgeting tools like a “jar system” or beginner apps, such as Greenlight or BusyKid. Teens can start using spreadsheets or actual budgeting software.
Money Lesson Learned: Budgeting helps kids learn how to manage both fixed and flexible expenses. It also helps them learn how to prioritize needs over wants.
Earn Money Through Work
Age-Appropriate Starting Point: Age 8+ (chores); 14+ (part-time jobs)
Whether it's doing extra chores, babysitting, or mowing lawns, earning their own money teaches kids the value of effort and time.
Money Lesson Learned: Earning money through work helps kids develop both a strong work ethic and financial independence. It also shows them how much work they need to put in to earn money for their expenses.
Practice Thoughtful Spending
Age-Appropriate Starting Point: Age 6+
Before making a purchase, teach kids to ask: “Do I really need this?” or “Is this the best use of my money?” Teens can compare prices, read reviews, or wait a day before buying.
Money Lesson Learned: This practice fosters intentional spending habits and reduces wasteful or impulsive purchases.
Sunrise Banks can also help set up families with the right financial tools for their children. You can visit sunrisebanks.com/personal-banking/youth-savings/ to get started.
Member FDIC.
