4 Simple Ways to Raise Money-Smart Kids (Starting Now)

If your kid is tech-savvy enough to unlock your phone, skip ads, and find their favorite show on a streaming app…they’re probably ready to start learning about money, too.

Here’s the reality: today’s kids are growing up in a world where money is mostly invisible. We tap, swipe, or send it with a click — and they’re picking up on it earlier than ever. In fact, a 2025 study reveals that 93% of parents with children under 18 are teaching finance basics early — right alongside skills like tying their shoes and riding their bike — helping their kids learn about money long before their first paycheck hits.

The good news? You don’t need to be a financial expert to get started. A few small, intentional steps now can go a long way in helping your kid build confidence and healthy money habits for the future. Here are four simple ways to begin:

1.  Start with the basics

Kids can start to understand the difference between saving and spending at a very young age — research shows those habits can begin forming as early as age three.

That can be as easy as letting them choose between a small treat (hi, after-school ice cream) now, or saving up for something bigger later (like that giant LEGO set they’ve been dreaming of). These low-stakes decisions help kids start to connect actions with outcomes (and yes, sometimes that means learning the hard way — which is part of the process).

2. Make everyday moments count

You don’t need a formal Money Lesson™ to teach your kid about finances, real life does the job for you.

For example, let them help you compare prices at the grocery store, explain why something goes in  your cart (or back on the shelf), or walk them through what happens when you tap “buy now.” These small moments add up and help make money talk feel normal, not intimidating.

3. Let them practice for real (with training wheels)

At some point, kids need to move from talking about money to actually using it — and yes, that can feel a little intimidating for parents.

That’s where having the right setup matters. Tools like Cash App Families are designed to give kids a safe way to start managing money, while you stay in control behind the scenes. With built-in protections, customizable parental controls, and a fully parent-managed experience for kids ages six to 12,¹ it’s a way to turn those early lessons into real-life practice, without the stress. Kids earn 3.25% on savings and design a custom debit card, while parents control the account.² No fees and no minimum balance make it easy to get kids started. 

Even better: Cash App accounts aren’t something they outgrow overnight. They can evolve as your child gets older, so the banking³ habits they’re building now can stick with them through their teen years and beyond.

4. Give allowance a glow-up

Allowance isn’t just about handing over a few dollars anymore, it’s a chance to help your kid build real-world money skills.

Instead of handing over no-strings-attached cash, give their money some structure: some to spend, some to save, maybe even some to put toward a bigger goal (new video game, anyone?). It’s a simple way to introduce budgeting, patience, and trade-offs — all without the pressure of “real” financial consequences.

theSkimm 

Raising money-smart kids doesn’t happen all at once. It’s about starting early, keeping things simple, and giving your kids the chance to learn as they go. With tools like Cash App Families, you can guide them every step of the way — helping them build confidence with money now and setting them up with skills they’ll use for years to come.

DISCLOSURES: 

¹Parents and legal guardians can open a managed account for kids 6-12. To view the eligibility requirements for sponsoring a child, please visit the Sponsored Accounts section of the Cash App Terms of Service.

²Cash App will pass through a portion of the interest paid on your savings balance held in an account for the benefit of Cash App customers at Wells Fargo Bank, N.A., Member FDIC. To earn interest on your Cash App savings balance, you need to have sponsor approval. Exceptions may apply. Savings yield rate is subject to change.

³Cash App is a financial services platform, not a bank. Banking services provided by Cash App’s bank partner(s). Prepaid debit cards issued by Sutton Bank, Member FDIC. Cash App Visa Debit Flex Cards issued by Sutton Bank, Member FDIC, and The Bancorp Bank, N.A., pursuant to a license from Visa U.S.A. Inc. See terms and conditions for the Sutton prepaid card, Sutton debit flex card, and Bancorp debit flex card. Savings provided by Cash App, a Block, Inc. brand.