parents teaching daughter to save money at home

Raising Financially Responsible Children

We all know that parenting is tough. Not only do you have to feed them and keep them alive, but throw in teaching them how to be financially responsible and you might be feeling like you’re ready to wave the white flag. Don’t give up! 

To quote Dave Ramsey, “More is caught than taught.” When it comes to money management for kids, it’s more about showing them what to do rather than telling them. Your kids are going to learn so much from how you manage your finances. That means raising a financially responsible child starts with you. 

How to Be A Financially Responsible Parent

One of the best ways to be financially responsible as a parent is by living on less than you make, doing a regular budget, saving (both for now and the future), and doing your best to live a debt free life

By showing your kids how to be financially responsible with the hard-earned money that comes your way, it’s going to stick with them over time. Let your children see you paying bills, budgeting with your spouse, and even invite them into the conversation (when appropriate).

How to Raise A Financially Responsible Child

Now that you’ve built a foundation for your own finances, it’s going to be a lot easier to teach money management to your kids. Here are a few ways to get started:

1. Talk about money—often.

Money isn’t everything, but it is an important part of life. When your kids grow up without money conversations, they’re not going to understand the importance of how to handle their own money one day. When you’re paying your bills or doing a budget, show your kids what you’re doing and explain why. They may not be interested for too long, but remember . . . you’re building a foundation.

2. Invite your kids to the family budget meeting. 

This might be for the older kids, but inviting them into the weekly budget meeting will help them begin to understand the idea of living on less than you make and being a good steward of your income. Let them speak into the budget, sharing what extracurricular activities they have coming up. This gets them thinking ahead and hopefully helps them understand what you mean when you say, “it’s not in the budget.”

3. Introduce an allowance.

Introducing an allowance gives your kids an opportunity to learn about the connection between work and money. How you decide to pay them is up to you, but cash is always a great option. Not only do they get to physically hold it in their hand, they also get to experience that feeling when they purchase something and it’s gone. As they get older, you can open up a checking account to teach them how to use a debit card (and how to make sure they don’t overspend).

4. Teach them the importance of giving and saving.

If you don’t show them now, who will? Whether you give a tithe or you just like to be generous with a portion of your finances, it’s important to pass that concept to your kids. Showing them that living life with an open hand (especially when it comes to finances) will allow them to experience the joy that comes from generosity. The same goes for saving. Saving and spending are opposite sides of the same coin. When you give your kids their allowance, share how vitally important it is to hold on to some of their money for a rainy day. As they get older, you can build that concept into an emergency fund, sinking funds, and even retirement funds.

There are so many resources out there on how to raise a financially responsible child. Not only are there books and classes, but there’s now social media accounts, YouTube videos, and more. But despite all of the resources out there, you’re the best person for the job—especially as you get your own finances in order. 

The advisors at SageSpring would love to help you build a solid financial foundation so you can help your kids build theirs. Reach out to an advisor in your areawe’d love to speak with you. 


Any opinions are those of the author and not necessarily those of Raymond James. This material is being provided for informational purposes only and is not a complete description, nor is it a recommendation. Expressions of opinion are as of this date and are subject to change without notice. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Investing involves risk and you may incur a profit or a loss regardless of strategy selected. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Material provided in part by Redstory, an independent, 3rd-party company.

SHARE THIS ARTICLE
615.861.6100
Jeffrey Dobyns
Jeffrey T. Dobyns

CFP®, CLU, CHFC

President, SageSpring | Financial Advisor, RJFS 
615-861-6102

Jeffrey T. Dobyns

President, SageSpring | Financial Advisor, RJFS

Jeff Dobyns has enjoyed extraordinary success providing comprehensive financial planning to retirees, entrepreneurs, entertainers, and executives by taking the time to truly know his clients, understand their goals and develop and execute their ongoing, strategic, financial plans.

Jeff earned his finance degree in business administration from Ohio University and has held executive positions with financial planning firms for more than two decades. After serving as Vice President of Investments of Lykins Financial Group, CPA’s, in his hometown of Westerville, Ohio, Jeff moved to Nashville, Tennessee to found SageSpring Wealth Partners in 2002. As its President, Jeff has led SageSpring to remarkable success, holding the distinction of being one of Raymond James’ top independent contractor offices, and a member of its Chairman’s Council*, every year since 2008.

Jeff’s true calling, however, is working directly with clients, helping them plan their financial futures in a manner that aligns with their values and helps provide them with financial confidence. To help meet these goals, Jeff leads the team of Dobyns Wealth Team and also incorporates the expertise of attorneys, accountants and other professionals to provide quality financial, tax and estate planning, and ongoing asset and risk management.

As independent advisory businesses, neither SageSpring Wealth Partners nor Dobyns Wealth Team hold any assets on behalf of clients, with such custodial and brokerage services being provided by Raymond James. As a leader in wealth management, Raymond James has an exemplary reputation and today serves more than $930 billion in client assets through 8,200 financial advisors worldwide (as of 9/30/2020).

In order to meet the highest standards of professionalism and ethics in the industry, Jeff is a CERTIFIED FINANCIAL PLANNERTM practitioner**, a Chartered Life Underwriter and a Chartered Financial Consultant. Jeff is also a participant of the Dave Ramsey SmartVestor program.

Jeff’s work and personal life are both guided by his faith and the Christian principles of honesty, generosity, compassion, and integrity. Accordingly, Jeff devotes considerable time and resources to a number of causes, including serving as a board member of Men of Valor, a prison ministry and mentoring program. He is also on the advisory board of The Signatry of Middle Tennessee, which works with families to increase their charitable giving to their favorite causes. Additionally, Jeff is on the advisory board for Halftime Institute, an organization that coaches marketplace leaders to discern and engage in their life purpose. Lastly, Jeff serves on the board of the Legacy Center of Nashville, a collaboration of independent coaching resources. He is a past board member of Porter’s Call, a Nashville charity that provides free counseling for musicians and their families, and the Martha O’Bryan Center, which empowers those in poverty to transform their lives through work, education, employment, and fellowship.

Jeff and his wife, Amy, are raising their family in Brentwood where they are members of the Brentwood Baptist Church, and their children, Gracyn, Hunter, and twins Tanner and Logan, attend the Christ Presbyterian Academy. For recreation, Jeff enjoys hunting, fishing and just being outdoors.

* Membership is based on prior fiscal year production. Re-qualification is required annually.

**Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.

SmartVestor is an advertising and referral service for investing professionals (“SmartVestor Pros”) operated by The Lampo Group, LLC d/b/a Ramsey Solutions (“Ramsey Solutions”). Pursuant to an arrangement between Ramsey Solutions, SageSpring Wealth Partners and your advisor, your advisor pays Ramsey Solutions a flat monthly fee to: (a) be a SmartVestor Pro, (b) advertise services through the SmartVestor website, and (c) receive client referrals in the form of an initial introduction to interested consumers who are located in your advisor’s Pros geographic region. SageSpring Wealth Partners does not endorse and are not affiliated with Ramsey Solutions, except with respect to the arrangement described above, and neither Ramsey Solutions nor its agents are officers or employees of SageSpring Wealth Partners. Further, neither Ramsey Solutions nor its agents are authorized to provide investment advice or act in any way on behalf of SageSpring Wealth Partners, except in connection with providing your contact information to your advisor.

Ramsey Solutions’ relationship and agreement is between SageSpring Wealth Partners only. Raymond James Financial Services, Inc. is not affiliated with the solicitor arrangement between Ramsey Solutions and SageSpring Wealth Partners.

Raymond James is not affiliated with any of the organizations mentioned above.