New Year’s Resolutions for Kids That Build Financial Smarts

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As adults, many of us are reflecting on the previous year and setting goals for the coming 12 months. The new year is also a great time to instill good financial habits in your children. Teaching your kids about how to manage their money early in life will set them up for success. You can make the learning process fun by turning these lessons into New Year’s resolutions for kids that they’ll be excited to meet. Here are eight goals you can set with your kids to teach them money skills and build confidence.

1. Save for Something Special

Encourage your child to set a savings goal for something they really want, like a toy or a gadget. Help them create a savings jar or open a kid-friendly savings account to track their progress. Show them how small amounts saved regularly add up over time. Use apps or charts to visually demonstrate their growth in savings, making the process engaging. Celebrate their milestones to keep them motivated and excited about reaching their goal. Teach them the importance of delaying gratification for larger rewards.

2. Learn the Difference Between Needs and Wants

Explain the concept of needs versus wants using everyday examples, such as food (need) versus candy (want). Create a fun sorting game where kids categorize items into these two groups. Teach them to prioritize spending on needs first, then allocate leftover money for wants. Use trips to the store as opportunities to discuss why certain purchases are necessary. Challenge your child to identify needs and wants at home to reinforce this concept. Highlight how making smart choices helps them save for bigger goals.

3. Start a Small Business

Help your kids brainstorm creative ways to earn money, such as lemonade stands, dog walking, or selling crafts. Guide them through setting prices, creating a budget, and managing profits. Teach them to reinvest part of their earnings to grow their small business. Encourage them to document their journey, building their entrepreneurial and organizational skills. Celebrate their successes and discuss any challenges to develop problem-solving skills. This hands-on experience can ignite a passion for entrepreneurship and financial independence.

4. Track Spending with a Journal

Give your child a notebook or app to track their spending habits. Show them how to write down every purchase, no matter how small, and total it weekly. Discuss patterns they notice and how they can adjust spending to meet their savings goals. Introduce the concept of a budget by allocating portions of their allowance to specific categories. Tracking spending builds awareness, helping kids understand the value of money and where it goes. Make it fun by using stickers or rewards to celebrate their tracking milestones.

5. Give Back to the Community

Teach kids the importance of generosity by encouraging them to set aside a portion of their money for charity. Help them choose a cause they’re passionate about, such as animal shelters or food banks. Volunteer together to show the impact of giving both time and money. Share stories about how their donations make a difference, fostering empathy and social responsibility. Create a giving jar where they can contribute regularly, making charity a consistent habit. Discuss how giving benefits both the recipient and the giver in meaningful ways.

6. Set Weekly Money Challenges

Make financial learning exciting with weekly money challenges tailored to your child’s age. For younger kids, challenge them to find the best value on a grocery item or count spare change. Older kids can compare prices online or research ways to save on purchases. Reward them for successfully completing challenges to keep them motivated. Use these challenges to introduce new financial concepts like interest, discounts, or budgeting. Weekly challenges make financial education interactive and help kids build practical skills.

7. Learn About Digital Money

Introduce kids to the concept of digital money, including online shopping, debit cards, and mobile payment apps. Teach them how to use these tools responsibly, emphasizing the importance of cybersecurity. Set up a prepaid debit card for older kids to practice managing their own spending. Explain the importance of keeping PINs and passwords secure to prevent fraud. Discuss the pros and cons of cashless transactions, helping them understand the evolving nature of money. Encourage them to think critically about their digital purchases and stay within a budget.

8. Create a Vision Board for Financial Goals

Help your kids visualize their financial dreams by creating a vision board together. Use magazines, markers, and stickers to make the activity creative and engaging. Include pictures or drawings representing short-term and long-term financial goals. Display the board somewhere visible to remind them of their goals daily. Encourage them to update the board as they accomplish milestones or set new goals. This visual representation keeps their financial aspirations top of mind and makes goal-setting fun.

Build a Foundation for Lifelong Success

Now that you know how you can teach your kids money skills through New Year’s resolutions, you know that there are numerous ways you can approach finances with your children. Talking about money and helping them learn the best ways to manage it will put them on a path to financial independence. Remember to keep the resolutions interactive and age-appropriate. Otherwise, take one of these New Year’s resolutions for kids and empower them with the knowledge they need to thrive financially.

How have you taught your kids about money? Let us know your approach in the comments.

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Drew Blankenship

Drew Blankenship is a former Porsche technician who writes and develops content full-time. He lives in North Carolina, where he enjoys spending time with his wife and two children. While Drew no longer gets his hands dirty modifying Porsches, he still loves motorsport and avidly watches Formula 1.