How to teach kids about money this summer

School’s out, but the learning doesn’t have to stop. Now, you’re the teacher. 

Summer break is the perfect time to start teaching your children about money and how to build smart money habits that last. 

If you’ve ever felt unsure about how to start, you’re not alone. Many parents want to help their kids become more financially savvy, but struggle with their own confidence in money management. 

According to the National Foundation for Credit Counseling, only about two in five Americans (42 percent) have a budget and keep track of their spending. It’s no wonder parents sometimes feel at a loss figuring out how to teach kids about money. 

The good news? You don’t have to be a financial expert to raise financially aware kids. You just need to be intentional, open and consistent. 

Get your own house in order 

You know this already: Kids pay more attention to what you do than what you say. Financial literacy will only get you so far. That’s why the first step in teaching kids about money is modeling strong money habits yourself. You don’t need to be perfect — just willing to demonstrate good decision-making and talk openly about how money works. 

Here are some easy ways to lead by example: 

• Walk them through your household budget. If yours is one of those three in five households that don’t have a budget, now is the time to make one (our Empeople Financial Guidance Experts can help). At least start teaching them how to tally receipts during a grocery trip or calculate how much you’ve spent so far in a month. Talk through your decisions as you go: “We’re choosing this store brand so we can save money for a family vacation.” 

• Explain how you handle bills. When you check the mail or pay bills, show them what’s happening. Point out the bill amount, explain when it’s due and show how you pay it — whether by check, online or through autopay. 

• Use cash to make spending real. Switch to cash for certain purchases this summer. Handing over a $20 bill instead of swiping a card helps younger kids better understand the value of money. 

Have the money talk — and keep having it 

You don’t need to share your salary or financial stressors, but you should talk regularly about how financial decisions get made. Kids are curious, and regular conversations can help demystify how money works. 

Here are some ways to get started: 

• Set a savings goal together. Choose something achievable — a family day trip or a new board game — and track your progress together. Each time you save money, show them the update and talk about the choices you made. 

• Use games to explain budgeting. Try laying out play money to show how income gets divided between spending, saving and giving. Use a video game or Monopoly board as a relatable tool to teach kids about money and how it flows out once you have it. 

• Break down the total cost of ownership. When your child wants something big like a pet, talk through all the related costs, not just the price tag. Food, vet visits and grooming help show how financial independence requires planning. 

Offer hands-on money experience 

Nothing teaches kids about money like using it. Research shows that hands-on experience is one of the best ways to learn. According to a University of Arizona study, most people who received personal financial experience in childhood said it helped them manage money as adults, and those who didn’t get that kind of practice said they wished they had. Whether it’s cash in a jar or money in a savings account, give them control over small amounts of money so they can practice making choices. 

Here are some ideas to give them this experience: 

• Start with clear jars or piggy banks. Designate one each for different categories, such as spending, saving and giving. As they get older, transition to a child-friendly debit card and banking app so they can track balances digitally. 

• Introduce an allowance system.  Don’t stress about your allowance system. Research by Brigham Young University says that whether you require chores for allowance or offer it freely, both systems have benefits. If you choose to pay for chores or offer bonus chores for extra cash, consider having your kids invoice you for work for a bonus money management lesson. 

• Set spending boundaries. Define what you’ll cover this summer and what they’ll be responsible for. Essentials like meals and outings are covered, but extras like brand-name gear or toys come from their funds. Consider splitting costs on items that build skills, like art supplies or lessons. 

• Let them feel the cost. When kids spend their own money, they think more carefully. Expect fewer impulse buys when they understand what things actually cost. 

Go beyond the basics

Once your child understands how to track spending and save money, take it further by touching on more advanced topics like investing, compounding interest and debt. Even fewer adults feel confident about investing than budgeting — only 27 percent express confidence in their ability to create an investment plan to build wealth, according to the Pew Research Center — but that doesn’t mean you can’t bring them along on your financial journey as they get into their teenage years, or introduce them to what you do feel comfortable with, like checking your retirement accounts. 

Ways to explore more advanced money topics: 

• Open a savings account. Show them how it earns interest over time — and have them investigate how different savings vehicles like money market accounts, high-yield savings accounts or certificates can offer different rates. If you’ve saved for them already, offer them a peek into their savings account. 

• Teach kids about credit. Talk about how credit cards work — including fees, interest and repayment. Consider offering a mock loan with interest so they learn how borrowing adds up. 

• Explore investing. Open a custodial investment account and let them choose a stock or fund to track. Encourage curiosity by reading news and watching how the investment performs. 

Encourage them to keep going

You don’t have to be a financial expert to raise financially capable kids. Just like with any life skill, the key to teaching your kids about money is starting early, talking openly and giving them chances to learn good money management by doing it. 

Whether you’re helping them open a savings account, sort birthday money into piggy banks or budget their allowance, you’re laying the groundwork for good money habits and long-term financial independence. 

And if you ever feel overwhelmed? Remember — every time you talk about money, make a spending choice or invite your kids to help solve a financial decision, you’re teaching them how money works. That’s a lesson that lasts well beyond summer.