Think back to how you learned what you know about money. Did someone explain it to you step by step, or did you figure it out on your own?
Whatever the case, today you can give your children something invaluable: a healthy relationship with money from a young age. These conversations help them build the confidence and skills they need to make financial decisions more independently, while giving you peace of mind that they are developing habits that can last a lifetime.
The good news is that you don’t need a finance degree to achieve this. Here are some age-appropriate tips to help you get started.
Practical tips to help children learn how to manage money according to their age and level of understanding.
At this age, everything is pure experience: children learn by touching, counting, and seeing. Therefore, it is an ideal time to introduce basic concepts before they develop their own ideas and beliefs about money.
How to lead the conversation:
Examples to practice at home (and beyond)
Use everyday situations to make learning both fun and tangible.
This is how they begin to understand that money can go further depending on the decisions we make.
At home, involve them in simple decisions, such as choosing between buying a treat today and continuing to save for something they want more. These small conversations help kids connect effort, patience, and good habits with the satisfaction of achieving a goal they set themselves.
These tools can help you turn those conversations into real habits and experiences for your children, from their first steps through college.
Here’s a tool that grows with your children, helping them now with their allowance and later with their first paycheck. Fill it out together each month to watch decisions become habits.
Platea x Popular tip: Complement your child’s accounts – Club del Ahorro or ATH Pop – with Ahorro Directo5, a free service that rounds up your purchases to the nearest dollar and transfers the difference to a selected savings account.
At this age, children begin to manage their money more independently. Between allowances and gifts on birthdays, Christmas, and other special occasions, they can accumulate larger amounts of money and have more opportunities to decide how to spend it. Therefore, this stage is ideal for helping them set more ambitious goals, prioritize expenses, and learn that every financial decision affects what they can achieve in the long run.
How to lead the conversation:
Examples to practice at home
Take them from theory to practice. Ask them to calculate the cost of their back-to-school materials, encourage them to plan a budget for a family movie night, or suggest that they compare prices for a special activity.
If they have a goal in mind, such as getting a bicycle, signing up for camp, or buying a video game, help them calculate how much they need to save and how long it will take. This helps them build patience, set priorities, and understand how today’s decisions can move them closer to their future goals.
You can also acknowledge important achievements, such as strong academic performance or consistently meeting responsibilities, by giving them a special cash reward. Then counsel them to use those rewards to help them achieve their goals sooner. This reinforces the link between effort, discipline, and results.
These tools can help you turn those conversations into real habits and experiences for your children, from their first steps through college.
Here’s a tool that grows with your children, helping them now with their allowance and later with their first paycheck. Fill it out together each month to watch decisions become habits.
Platea x Popular tip: Complement your child’s accounts – Club del Ahorro or ATH Pop – with Ahorro Directo5, a free service that rounds up your purchases to the nearest dollar and transfers the difference to a selected savings account.
At this age, teenagers begin to manage more money and gain greater independence. Extracurricular activities, summer jobs, their first date, and even gas (if they’re driving) prompt more realistic financial decisions. This stage helps them build habits that will serve them well when they get to college, land their first job, or take on the responsibility of managing their own budget.
How to lead the conversation:
Examples to practice at this age
Help your kids put simple budgeting strategies into practice. You can use the 50/30/20 rule as a starting point—50% for necessary expenses or commitments, 30% for personal treats, and 20% for savings. The key is to develop the habit of assigning a purpose to every dollar based on their needs.
You can also give them responsibility for managing specific expenses, such as entertainment, outings with friends, or personal purchases. This lets them practice making financial decisions in a supervised environment.
At this stage, saving takes on a clearer purpose. Whether it’s to pay for college, buy a computer, take a trip, or get their first car, the money they’ve saved can help them reach important goals.
At this point, they you can consider options such as a Certificate of Deposit (CD)6, which earns interest while the funds are set aside for a future goal.
These tools can help you turn those conversations into real habits and experiences for your children, from their first steps through college.
Here’s a tool that grows with them; it’s useful now for their allowance and later for their first paycheck. Fill it out together each month, and you’ll see how decisions become habits.
Platea x Popular tip: Complement your child’s accounts – Club del Ahorro, ATH Pop, or Mi Cuenta Uni – with Ahorro Directo5, a free service that rounds up your purchases to the nearest dollar and transfers the difference to a selected savings account.
Whether it’s opening their first savings account, planning their college education, or guiding them in their first steps toward financial independence, schedule an appointment and visit your nearest branch to learn about the right solutions for each stage.
The suggestions and recommendations contained in these articles are offered solely as financial guidance. Neither Popular nor any of its affiliates, subsidiaries, or related companies are or will be liable for any special, direct, or indirect damages arising from the information contained in this article. If you require any advice related to this article, you should seek it from a qualified professional of your choice.
Products and services offered by Banco Popular de Puerto Rico. Member FDIC.
Club Del Ahorro is an account designed to promote the importance of saving among children. It is available to children ages 0 to 17. There is no minimum deposit required to open an account, nor is there a minimum monthly balance. You can obtain more information by visiting www.popular.com/en/savings-accounts/club-ahorro/. Popular’s websites and online services are not directed to children under thirteen (13) years of age, and we do not encourage them to provide their personal information. Therefore, it is our policy not to intentionally collect information from children under thirteen (13) years of age. If we become aware that we have collected such information, we will comply with the requirements of the Children’s Online Privacy Protection Act (COPPA), including deleting such information from our systems. For additional information about COPPA, you can visit the Federal Trade Commission website at www.FTC.gov.
ATH Pop is a savings account with a Visa-branded debit card available to children ages 8 to 17. No minimum deposit is required to open an account. A $1.00 monthly service fee applies if the balance on any day during the monthly cycle is less than $50.00. For more information, visit www.popular.com/en/savings-accounts/ath-pop/. Popular’s websites and online services are not directed to children under thirteen (13) years of age, and we do not encourage them to provide personal information. Therefore, it is our policy not to intentionally collect information from children under thirteen (13) years of age. If we become aware that we have collected such information, we will comply with the requirements of the Children’s Online Privacy Protection Act (COPPA), including removing that information from our systems. For additional information about COPPA, you can visit the Federal Trade Commission website at www.FTC.gov.
Banco Popular’s Educational Contribution Account (CAE, its Spanish acronym) offers a range of investment options. You can find detailed information at any of our branches or on www.popular.com/en/ira/educational/ to determine which CAE investment option best suits your needs. Processing fees for withdrawals and refunds of excess contributions: $5 per instrument. Processing fees for transfers to other eligible institutions: $20 per instrument. Penalties for withdrawals or cancellations before maturity may apply, depending on the CAE. Certain restrictions apply. Banco Popular de Puerto Rico, its subsidiaries, and affiliates do not provide legal, accounting, or tax advisory services. If you require legal, accounting, or tax advisory services, you should consult a professional specializing in those areas.
SMS Alerts and Notifications is a free service offered by Banco Popular de Puerto Rico to its customers. Text message and data overage charges may apply, depending on your mobile service plan. Consult your service provider for more information about your plan.
The Ahorro Directo service applies to purchases made with your debit cards at point-of-sale (POS) locations. Upon enrollment, the service will be automatically activated.
Certificate of Deposit: We offer maturity terms ranging from seven (7) days to ten years (120 months). The Annual Percentage Yield (APY) varies by term. Once the certificate is opened, no additional deposits are permitted until maturity. You can learn more by visiting your nearest branch or calling TeleBanco Popular® at 787-724-3654 or 1-888-724-3654 toll-free.
Mi Cuenta Uni: $0 minimum opening deposit and minimum balance, $0 monthly service fees, and $0 fees for in-branch withdrawals and issued checks. Includes a checking section and a savings section that earns interest when you maintain an average monthly balance of $500 or more. Electronic statements (e-statements) are free. Paper statements are available for $2.00 each. For more information, visit www.popular.com/en/checking-account/mi-cuenta-uni/.
