The holiday season is a great time to teach your children about money and responsible spending. Learning how to spend and save during the holidays will help your children develop financial skills that will benefit them well after the season is over. 

It’s Never Too Early to Start 

Children learn about money at different ages, and it’s important to have conversations when they ask questions about finances. The holidays, with their focus on spending and giving, can be an ideal time to introduce these discussions and begin building financial awareness. 

Start with the Basics 

Let your children collect change and show them what physical money looks like. Today, many financial transactions are done digitally, so it’s important that children understand the concept of what money is. Seeing and counting physical money can help with that.  When children understand that money is finite, they begin to grasp the importance of living within their means — a key lesson in financial literacy. 

Give Them an Allowance 

Providing a small amount of money for children to manage can help them develop independence and decision-making skills. Whether it’s for buying gifts or contributing to family activities, this gives them hands-on experience with budgeting within limits. 

Get Creative with Handmade Gifts 

Encourage children to create gifts when possible. Handmade cards, crafts, or baked treats can be meaningful without being costly.  These activities also offer a practical way to reinforce lessons about saving money.