Every year represents a new opportunity to teach your kids a positive mindset around money — as well as educate them about how to manage money and grow it effectively.
For many, trying to do so in an inspiring and motivating way can be downright frustrating. How do you make financial literacy fun and approachable? How do you set the bar so that children see money as a tool rather than something to fear?
Discover More: I’m a Financial Advisor: 10 Most Awesome Things You Can Do for Your Finances in 2025
Find Out: 4 Subtly Genius Moves All Wealthy People Make With Their Money
According to Amanda Frances, financial expert, bestselling author and founder of Amanda Frances Inc., first you need to frame it the right way.
Below are her top recommendations for parents looking to make financial literacy fun in the new year.
“Money isn’t the problem — it’s the potential,” Frances said.
She explained that it’s necessary to help your kids see money as a resource they can use to create opportunities, open doors and amplify experiences.
“When they understand that money can support their dreams instead of standing in their way, they’ll approach it with curiosity and confidence,” she said.
Check Out: 8 Must-Read Personal Finance Books of 2024 for a Fresh Start in 2025
Kids are like sponges, according to Frances. “They soak up everything they see and hear, especially from their parents,” she said. “If you’re stressed, avoidant or fearful about money, they’ll pick up on it.”
For this reason, she recommended taking time to heal your own relationship with money and address unhelpful fears or habits around spending, saving, investing and using money intentionally. That way, you can teach your kids about financial literacy in a fun way.
“My book, ‘Rich as F*ck,’ is a great place to start. When you model a healthy, empowered approach to money, your kids gain the tools to build their own confidence and financial success,” Frances said.
“Life is your classroom,” Frances said.
Whether you’re at the grocery store explaining why you chose one brand over another or planning a family vacation, she said to talk about the decisions behind the numbers.
“These little moments show kids that managing money is a natural and thoughtful part of life — not something to stress about,” she said.
According to Frances, you should ask your kids what they really want — whether it’s a new bike, a family trip or their first car.
“Then, help them create a plan to get there,” she said. “When they see how earning money and not spending it all as it comes brings their desires closer to their reality, financial literacy becomes personal, exciting and motivating.”
“There’s nothing like seeing your name on your own bank account to make money feel real,” Frances said.
She recommended helping your child open a savings account and encouraging them to deposit money they receive.
“Set goals, track progress and celebrate milestones. Make it a big deal. It’s about making saving feel rewarding, not restrictive,” she said.
According to U.S. News & World Report, having a savings account can introduce kids to the idea of saving, teach them more complex money topics (like compound interest) and set them up for financial success as an adult.
Instead of just saving money, Frances advised parents to show kids how it can grow.
“Open a brokerage account in their name or set aside a small investment fund they can track with you,” she said. “Explain the basics of investing — like buying shares in companies they know and love — and watch their excitement grow as their money does.”
She said seeing their money work for them will teach them the power of patience and long-term thinking.
“If they spend all of their birthday money from Grandma on a toy they forget about two days later, don’t lecture,” Frances said.
When they regret the purchase, she advised against swooping in to save the day.
“Instead, talk through what happened and what they’d do differently next time,” Frances explained. “Mistakes are where the magic begins — financial mishaps teach resilience and help your kids develop their own financial confidence. Your home is the lab. Let them experiment before they’re out in the real world.”
According to Frances, you can teach generosity by involving your kids in giving.
“Whether it’s donating toys, contributing to a local cause or saving for a family act of kindness, showing them how money can make a difference in someone else’s life reinforces that money is about values, not just things,” she said.
When it comes to talking finances, Frances advised skipping the lectures and letting your kids get hands-on with money.
“Set up small ventures like selling crafts or baked goods, or give them a budget to manage for an event like a family movie night,” she said. “When they see how their actions impact results, they’ll understand that they have the power to create, manage and grow their money.”
Whether it’s a bake sale, dog walking or designing a cool product, she recommended teaching kids that money can flow from their passions and talents. “Kids have amazing ideas! Encourage them to think creatively about how to generate money,” Frances said. This, she explained, can spark excitement and show kids how to take control of their financial future.
She added that teaching kids about money doesn’t have to feel heavy or complicated.
“By weaving lessons into everyday life, celebrating their wins and giving them room to explore, you’re not just helping them understand money — you’re setting them up to win,” she said. “You’re positioning them to see money as a tool and resource, not something scary, limited or not for them. This is so powerful.”
More From GOBankingRates
This article originally appeared on GOBankingRates.com: How Parents Can Make Financial Literacy Fun in the New Year
