5 Essential Money Lessons Every Kid Should Learn Early
And how to start building their financial future today
As parents, we teach kids to say “please” and “thank you” - but do we teach them how to save, spend, or plan for their future?
A recent article from Eastspring Investments outlined 20 smart money lessons for kids. We’ve pulled five that stand out the most for today’s digital world - and added a simple way to put them into action.
1. Needs vs. Wants
Before your child understands budgets, they need to recognize priorities. New sneakers might be fun - but groceries, rent, and gas come first.
Try this: When shopping, talk through what’s essential and what’s extra. This creates a habit of thoughtful spending.
2. Saving First
Teaching kids to save a portion of every gift, allowance, or earnings builds long-term thinking.
Try this: Use the 3-jar method (Spend, Save, Share) - or better yet, move savings into a custodial account where it can grow.
3. Understanding Digital Money
Swiping a card or tapping a phone can make money feel unlimited. Help kids understand that invisible money is still real money.
Try this: Narrate your digital transactions. “We just spent $72 on groceries. That comes out of our weekly budget.”
4. Why Investing Matters
Saving is important - but teaching kids how money can grow is a game-changer.
Try this: A custodial investment account, like a UNest UTMA, allows parents to invest on a child’s behalf for long-term goals.
5. It’s Never Too Early
Money habits start young - and the earlier your child learns, the more confident they’ll be later.
Try this: Automate a small monthly contribution to your child’s account. Even $10–$25/month can create real opportunity over time.
Wrap-Up
Raising financially savvy kids starts with small conversations - and small actions. A consistent saving and investing habit, supported by tools like UNest, helps make those lessons stick.
Start your child’s account today
Don't just take our word for it
Hear what trusted money experts say about why UTMA and UGMA accounts can be a smart way to invest for a child’s future.
There are some tax advantages to using UGMA and UTMA accounts… Since they’re in your child’s name, the accounts will be taxed according to their tax bracket… There are no contribution limits on UGMA and UTMA accounts.
Dave Ramsey
Personal Finance Expert
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Investing for your kid’s future
Dave Ramsey
Personal Finance Expert
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...you could consider opening an account where you can dive deeper with the kids by your side. The easiest way to do so is to open a custodial account, known as an UGMA ... or UTMA ... account.
Jill Schlesinger
Emmy winning Business Analyst
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Straightforward “starter” investing account for kids
JILL SCHLESINGER
Emmy winning Business Analyst
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You can give children money that can accumulate somewhat tax-free over time... I love them (UTMAs) because they were like, trusts that you didn't need lawyers to create.... I think it's one of the better tax breaks around though. I know hunting for tax breaks may not sound very exciting, but that's how you take care of your family.
Jim Cramer
CNBC Host
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Give children money that can accumulate over time
Jim Cramer
CNBC Host
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