Teaching Financial Literacy to My Children: A Parent’s Journey

By Aaron B. Kershaw

As a parent of three children—Nick, who is heading off to college, Kyle, a high school junior, and Lizzy, a 9th grader—I’ve always been aware of the importance of teaching them about money. I work as a financial professional, so I understand how critical it is for young people to develop good financial habits early on. However, knowing this and putting it into practice are two different things. Let me share how I’ve been teaching my kids about budgeting, saving, and making smart financial decisions.

When Nick, my oldest, started high school, I realized it was the perfect time to introduce him to the basics of personal finance. We started with simple concepts like budgeting and saving. I explained to him that a budget is just a plan for how you will spend your money each month. I showed him how to track his expenses and set aside money for savings.

One weekend, we sat down and made a list of all his monthly expenses, including things like school supplies, clothing, and entertainment. We talked about the importance of saving for emergencies and big purchases, rather than spending all his money as soon as he got it. Seeing his excitement as he started to understand these concepts was incredibly rewarding.

As Nick and his siblings, Kyle and Lizzy, grew older, I wanted to ensure they continued to build on their financial knowledge. We made it a family activity to attend financial literacy workshops and use educational resources together. We even jokingly called it “Pop’s Money Management Chats—the Hour of Brain Pain,” as Lizzy would often say I was always going on about it.

I also set them up with Greenlight a few years ago, a debit card for kids and teens that allows me to send money as needs arise. Greenlight has been an invaluable tool for teaching my children about managing their finances. Through the app, they can set savings goals, track their spending, and even invest in fractional shares of stocks. It gives them hands-on experience with money management in a controlled environment. Greenlight has been a game-changer in fostering their financial independence.

In my professional life, I’ve seen how technology can simplify complex financial concepts. I wanted to bring this advantage into my home. One summer, I introduced my kids to an AI-driven financial planning tool. This tool analyzed their spending habits and provided personalized recommendations. It was an eye-opener for them to see where their money was going and how small changes could make a big difference.

For example, the tool highlighted how Nick’s daily energy drink habit was costing him over $1,000 a year. We discussed how cutting down on such expenses could help him save more for college. Similarly, we analyzed Kyle’s frequent energy drink purchases. Spending $3 a day on energy drinks added up to over $1,000 a year. Seeing these numbers helped Kyle realize the impact of his habits on his savings goals. This visual representation of their spending helped them make more conscious financial decisions.

Each of my children has different financial goals and challenges. Nick is focused on saving for college, Kyle is interested in investing, and Lizzy wants to save for extracurricular activities and future college expenses. To address their unique needs, I offered them personalized guidance, just as I do with my clients.

When my kids turn 16, I add them as authorized users on my credit cards, giving them a head start in the all-important credit race. Understanding credit is key to financial responsibility. By the time they enter adulthood, they already have a credit history, which is crucial for major financial milestones like renting an apartment, getting a car loan, or even buying a home. It’s important they learn how to use credit wisely—keeping balances low and paying off their bills on time.

In the past, our parents often struggled to explain finances and budgeting to us. My Italian grandfather had a straightforward approach: “You don’t have the cash—you no get the toy.” While that instilled a strong sense of spending within limits, it didn’t provide the full picture of modern financial management. By teaching my kids about credit, I aim to equip them with the knowledge to navigate today’s financial landscape effectively.

Adapting a budget early on has had a significant impact on my children’s lives. Research shows that students who learn to budget in high school are more likely to avoid debt and achieve their financial goals. I’ve seen this firsthand with my kids.

Kyle, for instance, is particularly focused on maintaining a growing balance in his accounts. He will even forgo simple teen needs like new video games, the latest fashion trends, or dining out with friends to ensure his savings grow. Lizzy, who is just starting high school, has already developed a habit of saving a portion of her allowance each month. One day, Lizzy came to me, clearly frustrated, and said, “Dad, now you’re in my head!” She explained that she found herself questioning items she wanted to buy, cursing my advice. As a parent, this was a joyful moment—I had won!

Teaching my children about financial literacy has been one of the most rewarding aspects of parenting. By understanding financial basics, engaging in continuous learning, leveraging technology, and providing customized support, I’ve helped my kids develop strong financial habits that will benefit them throughout their lives.

As a parent and a financial professional, I believe it’s crucial to equip our children with the knowledge and skills they need to navigate the complex world of finance. Encouraging early budgeting and financial literacy can lead to better financial outcomes, reduced stress, and greater financial stability.

For parents looking to start this journey, there are plenty of resources available to help. Some excellent places to start include:

• Greenlight
• National Endowment for Financial Education
• Consumer Financial Protection Bureau
• Jump$tart Coalition
• Financial Industry Regulatory Authority
• National Financial Educators Council
• University of Illinois Financial Wellness Program

By teaching our children the importance of financial literacy, we can empower them to make informed decisions and build a secure financial future.

Aaron B. Kershaw
CEO: SmartPlanHQ
[email protected]

Founder/Exec. Director:
BuildingBlocs Literacy
[email protected]