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How To Teach Your Kids About Money (before it’s too late) #103

We all want our kids to be happy and successful. And as entrepreneurs, we also know the world can throw some serious financial curveballs. Wouldn't it be amazing if our kids could handle them with confidence?

The truth is, most of us weren't exactly schooled in money management ourselves. Remember those awkward talks about "money not growing on trees"? Yeah, not exactly helpful.

But here's the good news: it's never too late to break the cycle and empower the next generation.

In this post, I'm going to share how I tackled the whole "teaching my kids about money" thing. We'll cover everything from mindset shifts to practical skills, so your little ones can navigate the financial world with their heads held high.

From Scarcity to Abundance: Shifting My Own Money Mindset

Let's be honest, our approach to money impacts our kids. I grew up in a household where money was always tight, and that feeling of scarcity definitely stuck with me for a while. But as I built my businesses, I realized something crucial: a scarcity mindset can be a major roadblock.

Here's the thing: focusing solely on saving every penny can lead to a vicious cycle. You pinch pennies here, restrict spending there, and it all ends up limiting your earning potential. It's like being stuck in a hamster wheel!

That's when I discovered the power of the abundance mindset. It's not about getting rich quick; it's about viewing money as something that flows. It's about focusing on providing value and earning more.

So, I swapped out those "money doesn't grow on trees" lines for something more empowering. Phrases like "there's plenty of money in the world, and it can be yours, but you have to earn it" became my go-to. I explained that earning comes from providing value, through work or a product someone wants to pay for. Money becomes an exchange of value, and the more value you provide, the more you can accumulate.

Getting Their Hands Dirty: Earning Money Starts Young

Let's face it, kids are capable of so much more than we sometimes give them credit for. The idea that you have to be a certain age to start earning money is simply outdated. Here's how I got my little crew involved in the world of work, even at a young age:

Odd Jobs Galore

My neighborhood became their mini-marketplace. We talked about offering services like dog walking, car washing, or even babysitting (with adult supervision, of course!). These odd jobs not only instilled responsibility but also forged a clear connection between effort and reward.

Value-Based Earning

We helped our kids identify their strengths and interests. Maybe your child loves baking delicious cookies – they could offer to bake a batch for a neighbor's birthday party. Or perhaps your son is a whiz at fixing bikes – he could advertise his services in the neighborhood. The key here is to focus on the value they can provide, not just offering the cheapest service in town.

People are willing to pay for things that solve their problems or make their lives easier. By helping your child identify their unique skills and market them effectively, you're teaching them a valuable lesson: their time and talent have worth.

This approach not only fosters a sense of accomplishment but also reinforces the concept that income is directly correlated to the value you provide.

The Power of Leverage

As they got older, we introduced the concept of leverage. For example, if one child had a particularly busy week with car washing gigs, they could "hire" their siblings to help out, allowing them to complete more jobs faster (and maybe split the profits!).

Remember, the goal at this stage isn't to become millionaires overnight. It's about building a foundation. They'll learn the value of money through experience, not just by saving every penny their grandma gives them for birthdays.

Real-World Money Management: Saving, Spending, and Investing

Once my little entrepreneurs started earning, it was time to introduce the real world of money management – saving, spending, and even a taste of investing. Here's how we made it a fun and engaging process:

  •  Earning & Sharing: When I get paid for brand deals or campaigns, my kids get a small percentage. This emphasizes their contribution and teaches them about profit-sharing. It's a win-win!
  •  The Power of Choice: I try to give them some freedom in how they spend their money. They learn to plan, budget, and prioritize. This fosters financial responsibility and teaches them the value of delayed gratification. No impulse purchases here!
  •  Saving for Goals: Setting savings goals for something they truly want is a powerful tool. My daughter saved up for a new skateboard, learning valuable lessons about delayed gratification and reaching goals.
  •  Investing for the Future: We even dabbled in the world of investing (with some guidance from my husband, of course). A portion of their earnings goes into a designated investment account Nick helps them manage. This opens their eyes to the concept of long-term growth and the magic of compound interest.

Open Communication is Key

Money shouldn't be a taboo topic in your household. Talk to your kids openly and honestly about finances. Answer their questions in a way they can understand, and explain your financial decisions without getting bogged down in adult jargon. This transparency fosters trust and empowers them to make informed choices about their own money.

Building a Thriving Family Economy: Practical Tips from the Trenches

Now, let's get down to the nitty-gritty. Here are some practical tips that have helped make money management a positive experience in our family:

  •  Allowance vs. Earning System: Ditch the traditional allowance and consider an "earning system" instead. Kids can earn money through chores, good grades, or completing specific tasks. This reinforces the connection between effort and reward, and they'll appreciate their money more.
  •  The "Money Hub": Create a designated spot for their money. We used a combination of physical containers (envelopes) and a designated bank account to categorise their savings, spending, and investment money. Seeing their money grow in each section is a great motivator!
  •  Business evaluation:  We have regular family discussion about good/bad business ideas and cash flows. This fosters communication and allows them to understand common business practices and decision-making process. It's a win-win – we get their input, and they get valuable financial/business insights.


  •  Age-appropriate Learning: Tailor your approach to your child's age and development. Don't overwhelm a five-year-old with complex investment strategies!
  •  Make it Fun!: Use games, activities, and even age-appropriate apps to make learning about money engaging. There are tons of resources out there to make it a fun family activity.
  •  Lead by Example: Your financial habits have a significant impact on your children. Be mindful of your spending and saving habits. If you're constantly stressing about money, they'll pick up on that anxiety. 

Join the Mompreneur Movement: Empowering Ourselves and Our Families

As Mompreneurs, we wear many hats. We're business owners, educators, and cheerleaders, all rolled into one. That's why I created Momentum, a membership specifically designed for entrepreneurial moms like you. It's a supportive community where you can:

  •  Connect with Like-Minded Mamas: Share your experiences, ask questions, and learn from other successful Mompreneurs. You're not alone in this journey!
  •  Exclusive Resources: Gain valuable insights on business growth, parenting strategies, and, of course, financial management. We've got your back!
  •  Empower Yourself and Your Family: Develop the skills and confidence to build a thriving business and raise financially responsible children. It's all possible, mama!

Join Momentum and start your journey to financial freedom for yourself and your kids.

Remember, it's never too early to start teaching your kids about money. By fostering a healthy money mindset and providing them with practical skills, you'll equip them to navigate the financial world with confidence and build a secure future.

Let's continue the conversation! Share your thoughts and experiences in the comments below.

Hi, I'm Michelle Hon, the founder of MomBoss Academy. 

I've discovered that building a $1,000,000 business is possible without taking investments and hustling all day long. I'm living proof that it can be done, and I want to help more moms achieve that for themselves and their families.

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