6 Simple Hacks to Nudge Your Child Towards Financial Well-Being

Table of Contents
[ Show ]

    Sometimes, all your children need is a gentle nudge to act. Here are six simple ways to guide your child towards financial well-being.

    Have them experience delayed gratification

     Change happens when a person is motivated by an emotional trigger or an imminent consequence. When children face a choice like spending their summer job money on a new phone or socking it away for a comfy retirement 40 years from now, their brains have a bias towards instant gratification. For rationality to kick in and steer them in the direction of sounder decisions, they need to experience the highs that come with putting off what they want now to get something better in return. At first, it can be small stuff, but once the mind understands that there is a bigger reward waiting, it will take note. 

    Start early

    We now know that financial habits crystalize as early as seven years old. The window of opportunity to set youth on the path to financial autonomy is narrow, but it’s entirely within reach. 

    The best way to start teaching children early is to start the conversation early. Children can start understanding the value of money by the age of 7.

    They might not understand what these weird paper and coins are exactly worth, but a few simple tricks can help them value how to use money. For example, with birthday or holiday money, you can help them decide what to purchase by evaluating how much they want a product with a rating score. If they rate bigger purchases higher, you can help them budget and save money for those items.

    Neo Credit
    Neo Credit
    Annual Fee:
    None with the standard Neo plan
    Purchase Interest Rate:
    Between 19.99%-29.99%
    Special Offer:
    You can earn 2% cashback at the pump or convenience store locations and 4% cashback on transactions made through the Shell App. This offer is only available in British Colombia, Alberta, Saskatchewan, Manitoba and Ontario.

    Arrange jobs to do

    You can offer them jobs that are outside their normal chores. For example, you can have them paint the bathroom walls. You can pay them for the supplies and work and let them figure things out.

    Or perhaps purchase projects they make on commission if they’re creative. There’s of course always the option of having them do yardwork for friends and family, and they can advertise their service.

    The point of these small jobs is to teach them the time invested in work pays in the end. They start to value their money as they spent time and effort earning it.

    Arrange a budget

    Budgeting is a skill that even many adults lack, but can be vital in crucial times in their lives. You can teach them to set aside a certain amount of funds for food, clothing, video games, and other things they would want to pay money for. This would also include savings where they can put aside a little money to allow them to make a big purchase.

    Review spending together

     While budgeting is a great tool, it becomes far more useful when you go over how that money was spent. You can start by going over your spending and rate how well you’ve used your budget. Then you can review their spending together so your child can best understand if they truly valued how they were spending their money.

    Take advantage of game-changer tools

    The challenge lies in combining all those nudges in an efficient and timely manner. The game-changer is that technological tools are here to help. Apps such as the WALO app turn pocket money into daily hands-on life lessons make introducing responsible financial choices early on in life a breeze.

    They can help your child organize their savings, their available funds they can budget with, view their allowance schedule and tasks, and makes dealing with their money fun and rewarding.

    EQ Bank Card
    EQ Bank Card
    Reward Rate:
    Benefit from 0.5% cash back on purchases
    This 100% free prepaid Mastercard also offers free ATM withdrawals in Canada, no FX fees, and up to 3% interest on deposits.

    Get 3.00%* on everyday banking with EQ Bank

    About The Author: Arthur Dubois
    Passionate about personal finance and financial technology, Arthur Dubois is a writer and SEO specialist at Hardbacon. Since arriving in Canada, he has managed to build his credit score, which he monitors for free using Borrowell. Arthur invests in the stock market without paying any fees through the online broker Wealthsimple Trade and earns 2.5% interest on the money he keeps in his EQ Bank's Savings Plus Account. He pays for his online subscriptions using his prepaid KOHO credit card, and uses his BMO CashBack Mastercard for most of his in-store purchases. When he buys bitcoins, it’s with the BitBuy online platform. Of course it goes without saying that he uses the Hardbacon app so that he can manage all of his finances from one convenient place.

    More recent stories


    The 10 Best Coffee Chains in Canada

    Coffee plays a vital role in the lives of many Canadians, serving as a morning energizer, an afternoon pick-me-up, and even a source of national pride. In a country known for its varied regions and sprawling distances, finding a reliable spot for that essential cup becomes more than just a casual desire—it’s a daily necessity. […]

    Read More

    The 6 Best Transit Apps For TTC Riders

    Those who use the TTC, Toronto’s public transit system, know just how important it is to have a third-party app that can help you navigate the system. Most transit apps allow you to check local bus or subway arrival times and plan routes from one point in the city to another. Although the TTC admittedly […]

    Read More

    How to Get a Free DashPass Subscription in Canada?

    Do you find yourself ordering food a lot? Then perhaps DashPass might be something for you. In a world where convenience is king, and time seems to slip through our fingers, finding ways to simplify our daily routines has become an essential pursuit. Enter DashPass – the beacon of seamless dining and culinary delight. Whether […]

    Read More