“Money doesn’t grow on trees.”
Many of us heard that growing up but few of us were ever taught how money works, why it matters, or how to talk about it without stress or shame.
In today’s fast-paced world, it’s no longer enough to teach our kids just about saving and spending. To truly prepare them for life, we need to raise children who are both financially literate and emotionally aware – because how we feel about money shapes how we use it.
At Finance4Families (F4F), we believe the family is the first financial school. And the earlier the lessons start, the stronger the habits become.
Let’s explore what it really means to raise emotionally and financially aware children and how you can start, no matter your income or background.
What Is Emotional & Financial Awareness and Why Is It Important?
Financial awareness means understanding basic money concepts: saving, budgeting, investing, earning, and spending wisely. Emotional awareness is about recognizing how feelings like fear, guilt, shame, or excitement influence our decisions.
Put the two together and you raise a child who not only knows how to save but also understands why they may feel tempted to overspend, how to manage disappointment, or how to ask for what they need without fear.
Studies show that emotional intelligence plays a big role in financial decisions. The Spendthrift-Tightwad Scale Research on Children, found that children who develop emotional regulation skills early are more likely to become responsible with money in adulthood.
Start With Conversations – Not Commands
You don’t need a finance degree or a big budget to teach your kids about money. It starts with simple, honest conversations, the kind you can have at the dinner table, in the supermarket, or while planning for school shopping.
Instead of just saying, “We can’t afford that,” try:
“We’re choosing to spend on what matters most this month – let’s decide together.”
When your child receives money, whether from chores, gifts, or allowance guide them through three steps:
Spend a little
Save a little
Give a little
These principles help develop balance, gratitude, and discipline — all while encouraging conversation, not conflict.
Let Kids Practice Real-Life Money Decisions
Involve your children in age-appropriate money tasks.
Here’s how you can start based on age group:
- Ages 5–9: Use jars or envelopes labeled “Spend”, “Save”, and “Share.” Let them decide how to split birthday or pocket money.
- Ages 10–13: Allow them to work for small monthly allowance. Let them budget for snacks, hobbies, or gifts.
- Teens: Teach them about mobile banking apps, goal-based saving, or the basics of investing (yes, they’re ready!).
Letting kids try and sometimes fail with small amounts teaches priceless lessons. Better they make mistakes with Kshs 200 now than Kshs 20,000 later.
Teach Them the “Why” Behind Emotions and Money
Children learn by watching and feeling. If they see panic every time school fees are due or guilt when spending on self-care, they absorb those feelings, even if you don’t say a word.
Instead:
- Normalize conversations about money.
- Show how to handle emotions like impulse, frustration, or joy.
- Be honest about challenges but also solution-focused.
Ask your child:
“How did you feel when you saved up and bought that toy?”
“What do you think we can do differently next month if we want to save more as a family?”
These questions help them connect emotions to choices a lifelong skill.
Ready to Raise a Financially Confident Child?
Join The Confident Kid Blueprint — a masterclass designed for parents who want to build strong money foundations at home.
📩 Have a question or want support building yours or your family’s financial plan?
We’re just a message away. Email us at hello@finance4families.com and let’s get started.
By Finance4Families | Building Family Wealth, Inspiring Financial Confidence
