200 Financial Habits You Should Teach Your Kids! (2024)

Children naturally have no impulse control, thus teaching them all about managing their impulses at a young age will provide them with a stable head on their shoulders so they can make proper decisions.

We all know that having good financial habits is important to the success of your saving money journey.

Teaching your kids about money management is important. It is as important as teaching them to brush their teeth or eat a proper meal. These life skills are all children have when they leave the nest and go out into the big bad world.

This post may contain affiliate links. Fullprivacy policy and disclosurehere.

Why Is It So Important To Take Control Of Your Money?

Financial responsibility should seriously have been a class in high school. But really, it should start at home at ripe ages of 5 or so.

After graduation, most of us immediately go get college debt and some sort of a credit card.

Being irresponsible with money at those ages causes financial stress that follows us for a really long time. That kind of stress can actually be avoided if the proper lessons are taught in school.

But alas, many are struggling to get out of debt and are having trouble saving money these days.

Saving money is not that easy. It takes self-control and some sacrifices to hit your goals.

Financial Habits You Should Teach Your Kids Today

Teaching your kids good financial habits is essential for their future financial success. Here is a list of 200 financial habits you can teach your children to help them become financially responsible adults:

1. Save a portion of their allowance or earnings.
2. Set financial goals.
3. Understand the value of money.
4. Differentiate between needs and wants.
5. Create a budget.
6. Track their expenses.
7. Learn to prioritize spending.
8. Delay gratification.
9. Avoid impulse buying.
10. Save for emergencies.
11. Open a savings account.
12. Understand compound interest.
13. Make a list before shopping.
14. Compare prices before making a purchase.
15. Use coupons and discounts.
16. Avoid unnecessary debt.
17. Pay bills on time.
18. Set up a piggy bank.
19. Discuss family finances openly.
20. Understand the concept of income.
21. Learn about taxes.
22. Understand the importance of insurance.
23. Save for retirement.
24. Diversify investments.
25. Avoid get-rich-quick schemes.
26. Learn about stocks and bonds.
27. Understand the concept of inflation.
28. Avoid payday loans.
29. Understand credit scores.
30. Practice good credit card habits.
31. Pay off credit card balances in full.
32. Avoid maxing out credit cards.
33. Save for big-ticket items.
34. Plan for college expenses.
35. Open a college savings account.
36. Avoid unnecessary bank fees.
37. Balance a checkbook.
38. Understand the difference between a bank and a credit union.
39. Save loose change.
40. Learn about entrepreneurship.
41. Understand the risks of starting a business.
42. Teach the value of hard work.
43. Encourage entrepreneurship.
44. Understand the cost of college loans.
45. Look for scholarships and grants.
46. Invest in education.
47. Teach them to negotiate.
48. Understand the importance of a good resume.
49. Practice good interview skills.
50. Learn about different career options.
51. Teach them about job benefits.
52. Discuss job-related taxes.
53. Encourage them to find a part-time job.
54. Understand the concept of insurance deductibles.
55. Save for a car.
56. Teach basic car maintenance.
57. Understand the cost of car ownership.
58. Encourage public transportation.
59. Promote eco-friendly transportation.
60. Teach the importance of charity.
61. Volunteer to help others.
62. Set aside money for charitable donations.
63. Understand the concept of tithing.
64. Teach the value of sharing.
65. Discuss the cost of utilities.
66. Teach them to conserve energy and water.
67. Discuss the importance of a good credit history.
68. Explain the dangers of identity theft.
69. Teach them to protect personal information.
70. Save for a down payment on a house.
71. Understand different types of mortgages.
72. Learn about real estate investments.
73. Teach them about property taxes.
74. Discuss home maintenance costs.
75. Teach them to shop for insurance.
76. Understand the concept of retirement accounts (e.g., 401(k), IRA).
77. Start retirement savings early.
78. Encourage long-term financial planning.
79. Discuss estate planning and wills.
80. Teach the value of negotiation in salary.
81. Set financial boundaries with friends.
82. Encourage entrepreneurship.
83. Teach them about inflation’s impact on savings.
84. Understand the concept of dividends.
85. Teach about the risks of speculative investments.
86. Explain the importance of a diversified portfolio.
87. Discuss the concept of supply and demand.
88. Teach them about economic cycles.
89. Understand the impact of government policies on finances.
90. Learn about international currencies and exchange rates.
91. Discuss the concept of economic recessions.
92. Teach about the importance of a rainy day fund.
93. Encourage them to save for a dream vacation.
94. Teach them to cook at home to save money.
95. Show them how to read a financial statement.
96. Discuss the difference between gross and net income.
97. Teach them to research before making a financial decision.
98. Encourage them to read financial news.
99. Explain the risks of high-interest loans.
100. Teach them to invest in their health.
101. Encourage them to buy quality products that last.
102. Discuss the concept of planned obsolescence.
103. Teach them to repair things instead of replacing them.
104. Understand the importance of long-term care planning.
105. Teach them about the cost of childcare.
106. Discuss the concept of time value of money.
107. Encourage them to negotiate better deals on purchases.
108. Teach them about the cost of owning a pet.
109. Discuss the pros and cons of leasing vs. buying.
110. Explain the concept of depreciation.
111. Teach them about investment risk tolerance.
112. Discuss the concept of financial independence.
113. Encourage them to set up automatic savings transfers.
114. Teach them about tax-advantaged accounts.
115. Explain the benefits of a health savings account (HSA).
116. Teach them about the importance of a good credit report.
117. Discuss the concept of a financial emergency plan.
118. Encourage them to save for home improvements.
119. Teach them about the cost of childcare.
120. Discuss the importance of regular financial check-ups.
121. Teach them about the concept of identity theft protection.
122. Encourage them to save for a dream wedding.
123. Teach them to plan for unexpected medical expenses.
124. Discuss the concept of a financial safety net.
125. Explain the importance of saving for a child’s education.
126. Teach them about the concept of dollar-cost averaging.
127. Encourage them to save for future technological advancements.
128. Discuss the importance of diversifying income sources.
129. Teach them about the concept of a financial mentor.
130. Explain the benefits of having a financial advisor.
131. Teach them to avoid over-leveraging in investments.
132. Encourage them to have an emergency fund for pets.
133. Discuss the concept of a financial accountability partner.
134. Teach them about the importance of a financial plan.
135. Explain the concept of financial goals.
136. Teach them to set aside money for hobbies and passions.
137. Discuss the importance of a financial vision board.
138. Encourage them to save for early retirement.
139. Teach them about the concept of delayed gratification.
140. Explain the benefits of automating finances.
141. Teach them about the importance of investing in themselves.
142. Discuss the concept of a financial support network.
143. Encourage them to save for a home gym or fitness equipment.
144. Teach them to avoid emotional spending.
145. Explain the concept of a financial journal.
146. Teach them about the importance of regular financial education.
147. Discuss the importance of living below one’s means.
148. Encourage them to save for future travel adventures.
149. Teach them about the concept of a financial vision statement.
150. Explain the benefits of tracking net worth.
151. Teach them to avoid financial comparison with others.
152. Discuss the concept of mindful spending.
153. Encourage them to save for future educational opportunities.
154. Teach them about the importance of a financial accountability journal.
155. Explain the concept of a financial wellness program.
156. Teach them about the benefits of having financial goals.
157. Discuss the importance of financial resilience.
158. Encourage them to save for a future business venture.
159. Teach them to avoid lifestyle inflation.
160. Explain the concept of a financial emergency plan.
161. Teach them about the importance of investing in relationships.
162. Discuss the concept of financial mindfulness.
163. Encourage them to save for a future home renovation.
164. Teach them about the benefits of having a financial role model.
165. Explain the concept of a financial bucket list.
166. Teach them to avoid impulsive online shopping.
167. Discuss the importance of financial self-care.
168. Encourage them to save for a future philanthropic endeavor.
169. Teach them about the concept of financial empowerment.
170. Explain the benefits of having a financial mantra.
171. Teach them to avoid debt for non-essential purchases.
172. Discuss the concept of financial education as an investment.
173. Encourage them to save for a future sabbatical or gap year.
174. Teach them about the importance of financial literacy.
175. Explain the concept of a financial audit.
176. Teach them to avoid financial decisions based on fear.
177. Discuss the importance of financial flexibility.
178. Encourage them to save for a future legacy project.
179. Teach them about the concept of financial gratitude.
180. Explain the benefits of having a financial mindset shift.
181. Teach them to avoid financial decision-making under stress.
182. Discuss the concept of financial adaptability.
183. Encourage them to save for a future passion project.
184. Teach them about the importance of financial empowerment.
185. Explain the concept of a financial decision journal.
186. Teach them to avoid financial procrastination.
187. Discuss the importance of financial responsibility.
188. Encourage them to save for a future charitable endeavor.
189. Teach them about the concept of financial stewardship.
190. Explain the benefits of having a financial accountability partner.
191. Teach them to avoid financial decisions driven by peer pressure.
192. Discuss the concept of financial self-discipline.
193. Encourage them to save for a future investment opportunity.
194. Teach them about the importance of financial self-confidence.
195. Explain the concept of a financial dream board.
196. Teach them to avoid financial decisions influenced by advertising.
197. Discuss the importance of financial self-awareness.
198. Encourage them to save for a future educational scholarship fund.
199. Teach them about the concept of financial values.
200. Explain the benefits of having a financial growth mindset.

Remember that teaching financial habits to your kids is an ongoing process. Start with age-appropriate lessons and gradually introduce more complex financial concepts as they grow and mature. Encourage open communication about money and be a positive financial role model to help them develop these important skills.

References

1. Effective Financial Literacy Education: School-based financial education programs can significantly improve the financial knowledge and attitudes of children and adolescents. Experiential learning in primary and secondary education and focusing on specific life events in college have been identified as promising methods for teaching financial literacy. Despite the positive effects on knowledge and attitudes, evidence on the impact of financial education on actual financial behavior is limited (Amagir et al., 2018).
2. Factors Influencing Financial Literacy: The integration of financial elements into subjects like mathematics has shown to instill financial literacy among students. Influential factors include teaching methods, parental socialization, and the school curriculum. Practical methods such as inquiry-based learning, technological simulations, and workshops enhance financial literacy (Saini & Rosli, 2021).
3. Teacher Professional Development: The effectiveness of teacher professional development (TPD) in financial literacy education is crucial, yet studies systematically investigating its impact on students’ financial literacy are scarce. The literature suggests a need for a clearer understanding of how TPD features should be implemented to optimize financial education effectiveness (Compen et al., 2019).
4. Islamic Financial Literacy: The education of Islamic financial literacy among early ages is emphasized, highlighting the need for support and guidance from strategic roles to achieve Islamic financial literacy from an early age. This includes understanding Islamic financial products and services, their benefits, risks, and compliance with Sharia law (Nabila et al., 2021).
5. Financial Literacy and Health Literacy: For older adults, managing financial and health literacy becomes increasingly important, impacting quality of life. A new area of research, financial health literacy, focuses on managing healthcare expenses, understanding treatment options, and making sound healthcare decisions within available financial resources (MacLeod et al., 2017).