How to help your child learn about money [Lessons I Wish I'd Known]

Imagine a future where your child doesn’t have to face the same financial anxieties.

A future where an unexpected school fee or medical bill doesn’t trigger panic, and where their financial independence isn’t just a distant dream but a comfortable certainty. That’s really what every parent wants, isn’t it?

The goal isn't riches, but rather a life with less worry and more security. True wealth, after all, begins with stability.

I’m not talking about having millions in the bank, though that would be nice, but about giving children the tools and habits to build a comfortable, choice-filled life, one where they can make decisions without constantly feeling financially strapped. 

The good news is that even small steps taken today can help your child enjoy a better quality of life  tomorrow.  

Why are these small steps so powerful?

The most powerful asset a child possesses is not their future salary but time itself. This means that even small amounts they earn or receive today, even pocket money, can be the starting capital for a lifetime of financial confidence and independence.

By learning the basics of saving and investing early, children can gain the ultimate financial superpower. Crucially, it doesn’t require a finance degree or a huge income; it requires strategy, discipline, and guidance from parents. Teaching your child financial literacy is one of the most valuable gifts you can give.

Why Starting Early Matters for Your Child’s Financial Confidence 

Millennials, Gen X, and older Kenyans know the sting of learning financial lessons the hard way. For many of us, the difference between constant financial stress and a truly soft life comes down to one painful realisation: hatukuanza kusave mapema, we started too late. 

Why does this matter now?

We often assume financial literacy starts with big money or a large salary, but in truth, even the smallest habits when started early can make a lifelong difference.

I wish someone had guided me sooner. Children who start learning basic money habits early are far more likely to develop strong financial skills as adults. 

This principle applies even to the smallest sums. Even a tiny amount like a ka 5 bob or ka 10 bob, can teach your child the value of planning, prioritising, and making money work for them.

Again, it isn’t just about getting rich. It’s about helping your child live a life with less financial stress, more choice, and more freedom to pursue their goals.

Ultimately, the goal is to shift your child’s mindset from “the now” thinking, which I personally grew up with, to “the next five years,” showing that consistent small actions build confidence and independence over time. 

If a child saves a fraction of their allowance or earnings each week, over months and years, the habit becomes second nature far more valuable than any single large sum. 

And let’s be honest. Even if you know teaching financial literacy is the right thing, many of us don’t have that knowledge as children, and to be fair, that can make it hard to know where to start.

But don’t worry; that’s completely normal.

To make this actionable, let’s start with the very first step. 

One practical step is to visit your local bank, Sacco, or financial institution. They usually have staff who can walk you through basic accounts, savings plans, or simple investment options.

Who knows? Along the way, both you and your child might learn something new together, discovering the habit of saving side by side. 

Building the Habit: The 3 Jars Method for Kids 

Teaching money isn’t about the amount; it’s about creating habits. Many financial experts recommend the Three Jars System because it makes saving, spending, and investing practical and fun by making it visually comprehensible.  

For each amount a child receives, it can be split like this:  

• Spend 50% for immediate wants so children can enjoy their money while learning to make money choices.

• Save 30% for short-term goals like a toy or accessory. This teaches delayed gratification, a core foundation of financial literacy.

• Invest or Give 20% for long-term growth or charity. This builds empathy and shows that  wealth isn’t just about accumulation; it can also be about positive impact.

Imagine a child starting to save today, decorating jars labelled Fun, Dreams, and Future. Each coin they drop isn’t about making millions; it’s about learning how their small choices today can make life easier and more comfortable tomorrow.  

Understanding Debt and Risk: Teaching Smart Money Choices 

Before children start investing, they must understand that debt can work against them.

Parents can show simple examples: borrowing Sh1,000 at 20% interest could cost Sh1,200, while investing the same amount could grow to Sh1,500 over time. This comparison teaches children to prioritise, avoiding high-interest debt early.  

Where to Invest Smartly in Kenya for Your Child 

Once children understand saving and patience, it’s helpful to show how money can work for them. 

As a parent open Custodial or Junior Account, which is designed for long-term growth and is managed until the child reaches adulthood.  

Investing in familiar companies or stable funds makes the concept tangible.

Your children can see  their money grow and understand how compound interest works, turning patience and consistency into excitement rather than theory.

Even with small amounts, the experience of saving and investing builds financial literacy that compounds faster than any interest rate. And even if they don’t become  wealthy in the traditional sense, they gain the confidence to live a comfortable, secure life on their own terms.  

The Real Gift: Financial Freedom, Responsibility, and Confidence 

Teaching children financial discipline now is one of the most valuable gifts a parent can give.

Starting early also has a broader societal benefit.

It can help challenge the culture of nipatieko, where some expect others to always hand out money. Helping others is important, of course, but dependency on other people’s money can collectively hold us back.

By teaching kids that financial responsibility is their own, we give them the freedom to choose the lifestyle they want.

Boy or girl,  there’s nothing more empowering than knowing you can afford the life you want with your own  money on your own terms, whether that’s wealth or just a comfortable, secure life.

Here’s a challenge for you parents.
What’s the first money conversation you’re going to have with your child this week?
Share it with other parents ready to raise financially confident kids because teaching one child can empower an entire generation.  

This is just my perspective, shaped by what I wish I had learned earlier. I’m writing this because I wish someone had started me on this journey as a child.

I’ve also drawn from what I’ve seen work  for others who were fortunate enough to gain financial literacy at a younger age.

Today, they have a healthy relationship with money and a level of financial freedom that makes life a little easier and more secure. I hope these lessons help more children in Kenya to start building confidence and independence, one small step at a time.