Adult Placing Money in Childs Hand

3 Valuable Lessons to Teaching Kids the Value of Money

I’m not sure about you, but I grew up in a family that did not teach me about money. The extent of my financial education was, “Save 10% of every paycheck and make sure you pay your bills on time.” Sound familiar? It should because roughly 97% of the population had the same education.

Statistics show that less 1% of the entire world population has no debt and $1,000 or more saved in the bank that wasn’t inherited. Crazy right? Are you part of the one percent?

I believe it all began when we stopped taking stock of what we had. Think about it for a second. When the world was run on an agricultural commerce system, farmers knew how many sheep they had, how many were born healthy that year, how many were expected to be born the following year, where each of those sheep were grazing, how they were impacted by the weather patterns, their feed etc. In other words, they knew everything about their source of income.

Fast forward to our current economy. The average working adult makes purchases with money they haven’t received yet (credit cards). They don’t know the exact amount of money they made on their last paycheck, they can’t forecast their next few paychecks and they can’t name where every dollar is going to when it leaves their account which is scary.

It’s time to change that culture. You may not have had a great financial education (as I didn’t) but that doesn’t have to be the same story your children have. It’s time to start winning with money and it starts with you.

Money is a tool

Simply put, money is a means to trade one thing for another. We trade money for clothing or money for petrol. It’s a means to an end. The end is subjective to the individual but in today’s economy, the means is the same. Here’s a great example of how trade works. During hurricane Katrina in 2005 the people that were effected by those flooding waters no longer thought about money as the greatest resource. In the midst of the disaster, money had very little value. What became the highest valued commodity? Clean, fresh, drinkable, bottled water. Yep. As sewers overflowed and contaminated the water systems throughout the city, drinkable water became scarce. Nobody was thinking about grabbing their wad of cash to go buy clothes, they were looking for clean and drinkable water. The water became the most valued means of trade. Money in itself is just a tool for trade. That’s it.

Teaching point: Buy multiple types of lollies and have the kids begin to trade for the types they want the most. Point out that they are trading certain lollies for the lollies they desire.


Investing at a young age is KEY!

Compounding interest is a beautiful thing, after 20-25 years!!! After 20 years the gains are so massive that the average person can’t comprehend it. If a 20-year-old starts to invest, they will have compounding interest working for them for 50-60 years. If a 40-year-old starts investing, they only have 30-40 years to benefit from compounding interest. Let’s check out the difference. Suppose a 20-year-old invests $1,000 (never adding a dollar to the investment) and averages 10% interest over 60 years, they would have $304,481 when they are 80. Now the same scenario for the 40-year-old. They invest $1,000 from 40 to 80 years old. They would have $45,259. Just a bit of a difference ey? Invest young!!!

Teaching point: Using play-doh, sprinkle tiny pieces of play-doh on a table. Have them make a small ball and begin rolling it over the tiny pieces on the table. As they do this, point out that their original ball is beginning to get bigger and bigger and bigger. The longer they roll the ball, the bigger it gets. 


Work hard, but work smart!

There’s no doubt that hard work pays off. But there is a difference between hard work and smart work. In order to build wealth, we have to think efficiency. What is the best use of our time? It may be that your time is best used in the workspace at the moment, but in the long run, you will be limited to your own time and abilities, which are highly limited. When we get others working for us, then we are able to leverage other people’s time, talents and abilities to build wealth. The best part… it frees up time and resources to do those things that you are the best at.

Teaching point: If your child is responsible for multiple chores, have them recruit some helpers. Show them how their time doing chores shrinks drastically by leveraging the help of others. 


One of our passions is to educate and help families build wealth in order to change their family trees and have excess finances in their budget to really bless others. 

Here’s to a great future!


Chris Martinez

Chris Martinez

Chris has a deep passion for teaching and business currently holding a Bachelor’s degree in Education and a Master’s Degree in Business Administration among other certifications.
Chris Martinez