Rob West

Jim Henry

*“Even a child makes himself known by his acts, by whether his conduct is pure and upright.”* Proverbs 20:11.

**We all want our children to be pure and upright in their walk with Christ and that certainly includes how they manage money. After sharing the Gospel with your children, one of the most valuable lessons you can give them is to follow God’s financial principles, because it positively impacts so many areas of their lives.**

Children need to learn that you work hard for the money that supports the family, that you’re not an ATM machine with unlimited funds. They need to work as well, to receive material rewards, and the satisfaction that comes with doing a job well.

They need to learn how to budget and spend carefully because there’s never enough money to do or buy everything we want. They need to learn how to save, not just for rewards, but to cover unexpected things, as you do with your emergency fund.

**And most importantly, they need to learn how to give, to be generous to God’s Kingdom because He is their ultimate Provider, as He is yours.**

A recent article by the Humble Dollar, a secular website, caught my eye because it lists five strategies for teaching wise money management to children. It was also interesting because all of these ideas can be found on the MoneyWise website in various places.

**To start, share the “big picture” with your kids.** You don’t have to reveal how much you make, or give them a copy of your 1040, but you can share many of your expenses with them so they get an idea of how expensive things are and what it takes to provide. Show them your mortgage and car payments and your weekly grocery costs.

Managing credit wisely is an important lesson for older children. When they head off to college, they’ll be inundated with credit card offers. Far too often, they fall victim to this and run up consumer debt, on top of any loans taken out for education.

A better strategy is to teach them about credit before they reach college age. That way you can monitor them. You could make them authorized users on your credit card, or you might open a secured credit card account for your teen; several issuers offer them.

If you’re unfamiliar with a secured credit card, it works like this: You deposit a certain amount with the issuer, say $300 or $500. You can then use the card up to that limit, but no more. Of course, you don’t want your teen to do that. They need to learn to pay off the balance each month out of their earnings, which brings us to allowances.

You can set up a three-jar system for holding allowance and gift money that kids receive. One jar for saving, one for spending, and one for giving. Have your children put some of their own money in the collection plate each Sunday. The earlier you teach them to be generous to their church, the better.

**Another valuable lesson for kids is that they’ll have to pay taxes, and maybe sooner than later.** If your teen has a job, the employer may withhold taxes. That means the child will have to file a return, even though they may not have to pay taxes.

You would probably use the 1040EZ form, but filling it out with your child would be an eye-opening experience, especially if taxes are owed. But impress on your child the importance of being scrupulously honest about money owed to the government.

Romans 13:6-7 reads, *“For because of this you also pay taxes, for the authorities are ministers of God, attending to this very thing. Pay to all what is owed to them: taxes to whom taxes are owed, revenue to whom revenue is owed, respect to whom respect is owed, honor to whom honor is owed.”*

**The last money lesson for your kids involves saving for and buying major purchases.** This is a great way to teach budgeting. Younger kids may want a special toy. Teens may want a cell phone, or even a car.

Help them set up a saving plan where they are at least providing some portion of the money needed for the purchase. The percentage isn’t important, figure out what’s best for your situation. The main thing is, have the child participate in the purchase with their own money.

**We hope you find those ideas helpful. Remember, the earlier you start teaching kids how to handle money wisely, the better**.

FaithFi

Articles

After sharing the Gospel, one of the most valuable lessons to give your kids is to follow God’s financial principles.

MANAGE | Jun 26, 2025

Financial Ed for Kids

By: Rob West and Jim Henry

Where Faith Meets Finance

You May Also Like