How to Teach your ADHD Kids About Money

Raising a child who understands financial responsibility is a big deal. When you throw ADHD into the mix, it can be a bit more difficult, but that's not to say impossible!

Teaching your kids about money and personal finance at a young age will instill financial literacy that will serve them for the rest of their lives. Let's discuss ways to teach your ADHD kids about money at different ages. 

Teaching toddlers about money

Toddlers are naturally curious, and they absorb everything that is happening in their environment. 

This means that they are noticing how you pay, how you talk about money, and how you financially interact with others (like your spouse). 

This is a great time to step back and check your money mindset. Are you fighting with your significant other about money? Are you spending on things that aren’t in alignment with your ‘Why’?

Now is the time to get your financial house in order, and the best thing that you can do with your toddler is tell them all about it.

Start their financial education at an early age. The simplest way? Lead by example. That’s right: your own financial literacy will increase your toddler's ability to make good money decisions. 

Talk with them about your decision-making process when it comes to simple purchases. 

The grocery store is a great place to teach your kids about money. Talk about your budget, point out how you are saving money by buying what’s on sale, and curb impulse shopping. 

Example: “Mommy would also like a treat, but that isn’t in the budget. We are saving for our vacation right now. How about we stop at the park as a reward instead?”

Use a clear piggy bank. Toddlers are visual learners. Watching the money they drop into the piggy bank pile up will have a deeper impact.

Teaching Preschoolers About Money

At this age, kids don’t understand the value of good money habits yet. But they do know that you need it to get things! 

Teach them that in order to get something from the store, you have to give something up. Money. 

This is a great age to ensure good financial habits. Start by having them pay for things at the store.

Examples: 

–Allow them to handle money. Give them two dollars and let them decide what to spend it on. Show them how many things they can get (two packs of gum or one candy bar). 

–Show them that sometimes the same thing can cost different amounts.  The mac and cheese aisle is a great place to comparison shop.

This is also a great time to start introducing your values. Is it worth it to pay more for organic food?

Teaching Elementary Kids About Money

At this age, you can increase your kid's financial literacy by introducing money management. It’s a great opportunity to teach children terms like:

–Personal Finance.

–Emergency Fund.

–Comparison shopping.

–Compound interest.

Start giving an allowance in exchange for extra chores. 

It’s ok to expect them to do chores without getting paid; offer an allowance for anything done above those expectations.

Encourage them to save money by helping them come up with their own ‘Why’. 

Maybe they are saving up for a fun summer camp. Or an upgraded bike. Label their clear piggy bank with their goal and watch it fill up. Teaching them delayed gratification so they can save up for big-ticket items will get them in the habit of making good saving choices.

Help them curb their desire for impulse spending.

Every time they go to buy a new toy, remind them of their ‘Why’. Does this move them closer to their goals?

Set up a savings account.

Lots of banks have fun programs for kids, so be sure to do some research.

Teaching Middle Schoolers About Money

This is the age to dive into the basics of budgeting and good financial behavior. Have them set aside a certain amount for spending, saving, and giving.

Introduce: 

–Taxes. 

–Insurance.

–Finance strategies.

Show them how to prioritize bills that need to be paid before spending.

Instill work ethic. 

Going to work = making money. 

Not going to work = no money. 

Money is made from providing value to others. 

Teaching High Schoolers about Money

Now is the time to expand on their budget and get a part-time job. They can save for a car, pay for gas and insurance, and open a checking account.

Talk about: 

–Debt.

–Credit cards.

–Investment accounts. 

Incentivize saving

Reward your kids for saving money. 

–Offer to match their savings. 

–Double the amount they get paid for a chore if they choose to save it. 

–Offer to pay for 50% of a big-ticket item that they are saving towards.

Talk about the gift of giving

Money can be very powerful. Talk to your kids about donating to places that are important to them. Teach them about spending power! Show them how their money and time can make a difference.

Give them cash instead of gifts 

Show them how to:

–Compare prices.

–Look for things on sale.

–Prioritize spending according to their ‘Why’. 

Instilling Financial Values

You are giving your children the gift of a head start. Lead by example, model good financial behavior, set financial goals together, and demystify personal finance. Imagine if you had understood the idea of compound interest and started saving for retirement in high school!

And remember, it’s never too late to start teaching them. And go easy on yourself; it’s ok to make money mistakes. They will learn from watching how you fix it!