Raising money-smart kids isn't difficult, it just takes honest communication and time. If you start discussing saving and spending when children are young, they’ll have a better understanding of financial matters when they’re older. Even a child as young as three can grasp the concept that items in stores cost money. When you’re shopping, take the time to explain to your son or daughter that you have enough money to buy popsicles but don’t have enough for popsicles and ice cream sandwiches. In time, making these comparisons will teach them to prioritize spending. 

When a child is older, discuss monthly household income versus expenses. Children who are aware of the family finances can better manage their expectations. Until they see exactly how much money is coming in and going out each month, they won’t understand why you can’t go out to dinner on a Friday or why the trip to Disney is out this year. 

Open communication between parent and child is crucial to raising money-smart kids, but they also need to learn by doing. Teach your child about saving money by getting them a piggy bank and allowing them to earn money for doing chores in the house and yard. Even a quarter given to a three-year-old as a reward for picking up toys can lead to better listening skills and improved motivation as they age. 

If you want your child to be money-smart, begin by downloading an app. Today’s kids are digitally savvy and love apps. There are apps to help young children manage their allowance and apps to help teens learn to save and spend wisely, both come with parental controls. There’s even an app for families that allow mom and dad to track the savings and spending habits of each child.