How to Teach Kids About Money: A Family’s Journey to Financial Freedom

Money isn’t just about numbers—it’s about choices, habits, and creating opportunities. For Jess and Mike, a couple in their mid-30s, money has always been a learning experience. After years of financial struggles, they’ve made significant progress and are determined to ensure their daughter, Ella, doesn’t inherit the same challenges. Now 13, Ella is learning valuable lessons about saving, spending, and earning—and just like her parents, she’s had her fair share of ups and downs.

The Early Years: Starting Small

When Ella was 8, Jess and Mike were just beginning to turn their finances around. After years of juggling credit card debt, car payments, and unexpected expenses, they had finally built a small emergency fund and opened savings accounts at First Alliance Credit Union.

They wanted to teach Ella about money early, so they started with simple, everyday lessons:

• Allowance with a Purpose:
  Jess and Mike gave Ella $5 a week for completing chores like cleaning her room and setting the table. “At first, she wanted to spend it all on toys and candy,” Jess laughs. “But we saw it as an opportunity to teach her about making choices.”

• The Three-Jar Method:
  Ella’s allowance was divided into jars labeled Save, Spend, and Share. She saved for bigger goals, spent on small treats, and donated to a local animal shelter. “It was heartwarming to see her proud of helping others with her share jar,” Mike recalls.

• Everyday Teachables:
  On grocery trips, Ella helped compare prices and find the best deals. “She loved being part of the decision-making,” Jess says. “And it gave her a sense of responsibility.”

These small steps helped Ella grasp the basics of money management and set the foundation for future lessons.

Fast Forward to 13: New Challenges, Bigger Lessons

Now a teenager, Ella faces new financial challenges as she navigates greater independence. She earns money babysitting and has a Teen Account at First Alliance Credit Union, complete with her own debit card.

But, like many teens, Ella’s road hasn’t been without bumps.

• Impulse Spending:
  “When she first got her debit card, she was so excited that she spent nearly all her babysitting money on clothes and fast food,” Jess says. “We had to sit down and talk about balancing wants and needs.”

• Struggling to Save:
  Saving for bigger goals, like a new phone, hasn’t been easy for Ella. “She’d save for a few weeks, then dip into her savings for something else,” Mike explains. To help her stay on track, they used the Budgeting Calculator at First Alliance. “Seeing her progress visually made a big difference,” Jess says.

• Learning About Credit:
  Jess and Mike also introduced Ella to the concept of credit scores and credit cards. They explained how it works and why it’s important to use it responsibly. “We want her to understand credit now so she doesn’t make the same mistakes we did,” Jess says.

Despite these struggles, Ella has made great strides in managing her money. She recently saved enough to buy a new phone and is already planning her next goal—a weekend trip with friends.

Start budgeting for your new phone!

Making Learning Fun with Greenlight

To make money management more engaging, Jess and Mike signed Ella up for the Greenlight app and debit card, a tool available through First Alliance Credit Union.

• Interactive Lessons:
  Greenlight’s Level Up™ game taught Ella about budgeting, investing, and saving through fun, interactive challenges. “She’d show us her badges with so much pride,” Mike says.

• Budgeting Categories:
  Ella set up categories for her spending, like “Clothes” and “Snacks,” which helped her stick to a budget. “It wasn’t always perfect, but it gave her a sense of control,” Jess explains.

• Investing for the Future:
  One of Ella’s favorite features was learning about investing. With her parents’ help, she invested a small amount in companies she recognized. “She loved saying she was a ‘shareholder,’” Mike chuckles.

Greenlight didn’t just teach Ella financial skills—it gave her the tools to practice them in real life, all while keeping Jess and Mike involved.

Level up your child's financial literacy with Greenlight!

Building a Brighter Financial Future

For Jess and Mike, seeing Ella grow into a financially savvy teen has been one of their proudest achievements. But the journey hasn’t been just about Ella—it’s been about transforming their entire family’s relationship with money.

• Youth Accounts at First Alliance:
  Ella started with a Youth Savings Account when she was 8, where she learned the value of saving. Now at 13, her Teen Account includes a checking account, debit card, and access to online and mobile banking.

• Overcoming Setbacks:
  Jess and Mike have been open with Ella about their own financial struggles, sharing lessons they’ve learned along the way. “We’ve always told her it’s okay to make mistakes—as long as you learn from them,” Jess says.

• Focusing on Goals:
  Together, the family sets financial goals, from saving for vacations to building an emergency fund. “We’re all in this together,” Mike says. “It’s not just about teaching Ella—it’s about creating habits that will help all of us.”

How First Alliance Credit Union Can Help Your Family

At First Alliance Credit Union, we’re here to support families like Jess and Mike’s every step of the way.

• Youth Accounts (Ages 0-12):

  • Start with just $5.

  • Teach kids about saving with Youth Certificates of Deposit and Youth Money Markets.

• Teen Accounts (Ages 13-17):

  • Include checking and savings accounts, a free debit card, and mobile banking.

  • Tools like overdraft protection and Savings Goals help teens learn responsibility.

• Greenlight App:
  Available at no cost to First Alliance members, this app combines lessons, budgeting tools, and hands-on experience to teach kids and teens about money.

A Lesson That Lasts a Lifetime

Today, Ella is a confident, money-savvy teenager who knows how to save, budget, and even invest. She still makes mistakes now and then, but Jess and Mike wouldn’t have it any other way. “We’ve learned so much together as a family,” Jess says. “And seeing Ella make good money moves—well, that’s priceless.”

Are you ready to help your kids build their own financial future? Visit First Alliance Credit Union to explore Youth and Teen Accounts or sign up for Greenlight. Let’s help your family make Good Money Moves today!

Have more questions about teaching kids about money? Ask us!