Finances FYI Presented by JPMorgan Chase
By Aaron Allen, The Portland Medium
According to Paul Butler, a Community Manager with Chase, teaching kids about money early can set them up for long-term financial success. By helping them understand concepts like saving, budgeting, and distinguishing between needs and wants, parents can equip their children with the skills they need to make informed financial decisions.
“It’s important to have conversations with kids about finances, whether they’re in elementary school, high school, or college,” Butler says. “Smart money management is a lifelong skill, and starting early can help them make informed financial decisions as they face new challenges.”
Developing strong financial habits doesn’t have to be overwhelming. By incorporating open discussions, tracking spending, using financial tools, and setting savings goals, kids can learn practical ways to manage money responsibly.
Start the Conversation Early
Talking about money in an age-appropriate way helps children understand how finances work in daily life. Even young children can grasp the concept that money is used to buy things they need and want. As they grow, parents can introduce more complex topics, such as budgeting, saving for goals, and understanding income and expenses.
“Begin the conversation in a way that highlights key financial ideas,” says Butler. “For example, helping kids recognize the difference between needs and wants, encouraging them to save for something special, and teaching them how to track the money they earn and spend.”
Take Notes and Use Tools
Teaching kids the basics of budgeting early on helps them develop responsible spending habits. Tracking income and expenses can be as simple as writing down their allowance, gifts, or earnings from small jobs and comparing them to their spending. Parents can introduce budgeting worksheets, mobile apps, or other digital tools to help children and teenagers gain a clearer picture of their finances.
“Any leftover money is best put into savings first, and then they can consider working toward items or experiences they might want to buy,” Butler advises. “There are many budgeting resources available, so finding one that works for your child can make learning about money easier and more engaging.”
Get Organized and Go Digital
As children grow older, introducing them to banking tools can help them develop financial confidence. Opening a first bank account gives them hands-on experience with tracking balances, making deposits, and managing spending. For high school and college students, accounts designed for young adults can provide additional features such as budgeting assistance and savings goals.
“Whether it’s a first banking account or one geared toward a college student, there are multiple options that allow kids to practice financial management in a real-world setting while still having parental guidance,” Butler explains.
Plan for the Future
Planning ahead is a key part of financial literacy. According to Bankrate, 59% of Americans feel uneasy about their emergency savings, and 27% have no emergency fund at all. Teaching children that unexpected expenses can arise—and that having savings can help manage them—builds financial resilience.
Setting aside money for both short-term goals, such as a new toy or video game, and long-term goals, like saving for college or a major purchase, helps kids learn how to plan and prioritize their finances.
Parents can also reinforce financial responsibility by demonstrating smart money management in their own lives. Setting a positive example by budgeting, saving, and making thoughtful financial decisions helps children learn by observation. Involving them in age-appropriate financial discussions, such as planning a family trip within a budget or comparing grocery prices, can make financial literacy more practical and engaging.
“Your kids can start learning and practicing vital money skills now that will stay with them for life,” says Butler. “It’s truly important to make sure we teach them to plan for their futures. I know it may seem tough in the beginning, but just like anything else, how do you eat an elephant? One bite at a time. Progress will happen as long as you are intentional and ensure that financial literacy is a priority.”
Finances FYI is presented by JPMorgan Chase. JPMorgan Chase is making a $30 billion commitment over the next five years to address some of the largest drivers of the racial wealth divide.
