Maintaining a healthy relationship with money takes effort. We all make mistakes and grapple with the emotions that influence our financial decisions.

And then, we have kids.

Suddenly, you’re responsible for both your own financial literacy and that of your children. It can feel like a lot of pressure.

Financial conversations put parents in a tough spot. When surveyed, a whopping 83% of parents would have liked to learn more about money as a child. This knowledge gap can make parents feel unprepared to discuss finances and could explain why many look for additional resources to help them teach their kids good financial habits. 

Raising money-smart kids doesn’t require a complex plan, perfect credit score or advanced degree. To help you kickstart the discussion, we’ve rounded up five simple tips to tackle money matters with your children. If you like these ideas, be sure to register for our webinar on August 18 at 5:30 p.m. PT/8:30 p.m. ET to learn more.

Start the conversation early

When you begin talking about money with your kids, it can set them up to make good financial decisions down the line. How young is too young? According to 2018 research, at three years old, children can grasp basic money concepts, and there’s evidence to suggest many financial habits are set by age seven. Still, there are longstanding money lessons appropriate for every age that evolve as your kids gain math skills and face new responsibilities or decisions in life.

If you’ve been avoiding money talks, it’s important to give yourself some grace. Money is not a “one and done” conversation and establishing a natural, ongoing dialogue takes time.

In other words, don’t stress too much about timing money talks with your kids — just start having them.

Find opportunities in everyday life

Good news! You don’t need deep financial expertise to impart valuable money lessons. Modern life affords parents many opportunities to bring financial concepts to life. A trip to the grocery store can open a conversation about the cost of food, household budgets or discerning wants (cookies) from needs (eggs).

Involving your children in money moments helps them see how it works in practical, everyday situations. This approach can be helpful for parents who were raised in a home where money was taboo. Explaining factual financial transactions in the moment may feel more natural than the pressure to explain your household budget.

Emphasize the importance of saving

Helping your child establish good savings habits is critical. Give your child a piggy bank and encourage them to save up for something they want, like a toy, in the short term. As your children get older, they can then save up to accomplish longer-term goals. Socking away money they earn or receive for birthday gifts teaches kids about delaying gratification. Staying focused on savings goals and avoiding the temptation to spend the funds is challenging for most people. Openly discussing the emotional pull and talking about it helps your kids become aware of the feelings that often accompany — and influence — money decisions.

One simple way to encourage your children to save is to open a MySavings Youth Account from Spectrum Credit Union. This high-dividend savings account is for members 21 years old or younger and, unlike other savings accounts, has no minimum balance requirements or monthly fees.

Help them to earn money

You can show your younger children the value of hard work by giving them an allowance in exchange for doing chores around the home. Tailor the allowance arrangement to your child’s personality to set them up for success. For example, a child may struggle with their chores because they forget what they are supposed to do. But if you help them write out a to-do list, hang it in a spot they can see and give them reminders, they’ll be more likely to complete their chores and earn that allowance.

Older kids can seek out opportunities outside your household to earn money. Whether it’s a part-time job or a side gig, encourage them to funnel a portion of their earnings into a savings account that’s earmarked for college expenses. 

Be a financial role model

If you want your children to have a positive relationship with money, you’re going to need to model those positive habits. For example, when items around your home break, you could fix them instead of immediately buying a replacement. You can talk about the things you are saving for such as a family vacation, holiday presents or a new car and keep them posted on your progress.

Being a role model does not mean you have to be perfect. Acknowledging that financial missteps are normal lets kids know perfection is not the expectation. When money mistakes arise, encourage your child to focus on what they can learn from the experience rather than beat themselves up.

Ensuring a bright financial future for the next generation

Teaching your children about money is an amazing opportunity to help them have a positive relationship with their finances.