How It All Started
At our house, we do money a little differently.
Instead of handing out cash whenever our kids ask—or constantly saying no—we’ve started teaching our kids about money in a way that mirrors real life. A few years ago, we sat down and looked at what we were already spending on each child throughout the month. From there, we created a new system. We gave them something they now look forward to: a monthly payday.
Yes, a real payday.
Every month, just like a paycheck, our kids get an age-appropriate amount of money. But there’s a catch—they have to budget it.
Our Kid-Friendly Budgeting System
When payday comes, they divide their money into five categories:
- Future – Long-term savings (think: car, college, investments)
- Fun – For toys, outings, games, and anything “just for fun”
- Discovery – Learning-related expenses like books, apps, or hobby gear
- Treasure – A savings goal they choose (something big and meaningful)
- Charity – Because giving matters, and we want them to feel that joy too
This structure isn’t just about allowance—it’s about teaching kids about money through hands-on experience. They make real decisions and sometimes real mistakes, and that’s where the learning happens.
Why It’s Working
Our kids are starting to understand more than just the value of a dollar. They’re learning about delayed gratification, generosity, responsibility, and self-discipline. These aren’t just money lessons—these are life lessons.
By teaching kids about money early, we’re giving them the tools to make confident, informed decisions later in life.
And that’s exactly what we want.
Taking It a Step Further: Real Costs, Real Responsibility
Recently, we noticed a disconnect. Even with their budgeting system in place, our kids didn’t fully grasp how much we were covering behind the scenes—especially when it came to sports, music lessons, or special outings.
Registration fees, equipment, cleats, uniforms… it all added up. But to them, it just appeared like magic.
So, we’re adding a new layer.
If our 13-year-old wants to play basketball and the season costs $400, he’ll now be expected to cover at least half. He’ll also be responsible for his gear—like shoes, shorts, and a gym bag.
Our 8-year-old might be responsible for a third of his activity cost. The youngest? Maybe a quarter. It’s adjusted by age and ability, but the core message is the same:
We’re teaching our kids about money by helping them connect choices to value.
What We’re Seeing Already
We’re already seeing changes—especially in how they approach spending.
Our youngest, who used to blow through his “Fun” money in a day, now pauses before making a purchase. Our older child has started comparing prices and asking better questions. The gears are turning.
They’re starting to understand that money is more than just a tool to get what you want—it’s something you manage, respect, and plan for.
And that awareness? It’s gold.
Why We’re Committed to Teaching Our Kids About Money
Paying our kids isn’t about rewarding them. It’s about preparing them.
We want them to experience what it’s like to manage money while the stakes are still low. We want them to make mistakes now—so they’re not making them later when rent, groceries, and student loans are on the line.
Because teaching kids about money is about more than dollars and cents. It’s about independence, critical thinking, and emotional intelligence.
Final Thoughts
We’re still learning. We’re still adjusting. But this system—this mindset shift—is shaping our kids in the best way.
They’re learning to think before they spend. To save for something meaningful. To give with intention. And to take pride in their decisions.
So if you’ve ever wondered how to start teaching your kids about money, this might be your sign to try something new.
It doesn’t have to be perfect. Just intentional.
And that’s where the magic happens.