More parents are turning to digital tools to teach their children how to earn, spend, and save responsibly. From managing chores to tracking spending in real-time, new apps are reshaping how families handle allowances — and financial lessons.
Karl and Rachel Young, for example, use Acorns Early with their two children, ages 12 and eight, to help them learn basic money concepts.
Their daughter, Mila, uses the app to get paid for babysitting and can see exactly how much she’s earned and spent. Her younger brother, Liam, meanwhile, is learning firsthand that treating friends to pizza means less left over for his favorite games (1).
Greenlight reported (2) that kids and teens collectively managed more than $2 billion through its platform in 2024, with an average weekly allowance of $13.42 and a monthly spend of $126.
Major players, such as Greenlight, Acorns, and FamZoo, have attracted millions of new users since 2020 — proof that parents want modern ways to teach their children practical money skills early. (3)
So, do you need an app to teach your kids financial responsibility, or is the old-fashioned way the best? We offer some tips on starting financial literacy conversations at a young age, teach the value of saving, plus how you can track your children’s spending habits.
The value of these apps goes beyond convenience for parents and budgeting lessons for kids. Research consistently shows that when children learn how to manage money early, those habits grow over time — and the benefits follow them well into adulthood.
For example, a 2023 report from Vermont’s Champlain College (4) found that high-school students who took financial literacy courses were more likely to maintain higher credit scores, pay bills on time and avoid payday loans well into adulthood.
The positive effects were still visible 12 years after graduation, and even extended to their parents, who also improved their credit behavior.
A 2020 study (5) found that 18 to 21-year-olds who had three years of financial literacy education in high school were 40% less likely to fall behind on credit card payments and had credit scores 25 points higher than their peers.
And these lessons are quantifiable, too. A 2024 report (6) by consulting firm Tyton Partners and Next Gen estimated that just a single semester of personal finance instruction can generate a lifetime economic benefit of $100,000 per student.
“We say it’s $100,000, but as we start to see more and more young people investing, that number is only going to increase,” Tim Ranzetta, co-founder and CEO of the non-profit Next Gen Personal Finance, told CNBC (7).
While classroom instruction plays a major role, financial literacy starts at home. Parents set the tone long before kids get their first paycheck or debit card, and the lessons your children learn around the dinner table can carry more weight than any lessons in the classroom.
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For families, the question becomes how to turn these broader lessons into age-appropriate lessons at home. The good news is that teaching kids about money doesn’t require an app or a finance degree. It starts with a few simple habits:
Turn regular activities into teachable moments. For example, as you sit down to dinner at home, discuss how much the meal cost to make and how much you might have spent in a restaurant for a similar meal.
Explain what that money could be used for instead of takeout or expensive restaurants.
Look up how credit cards, savings accounts, or even beginner-friendly stocks work. Discuss interest, rewards programs, and how investments grow over time. Older teens can track their own savings or explore how a secured credit card works in a low-risk setting.
Kids often get excited about shiny new things, but that excitement usually fades fast. Ask your child what they spent last month’s allowance on, or how they used birthday money last year.
Revisiting those choices can help them see which purchases were worthwhile and which ones they barely recall.
Whether through an app or cash, give them a set amount, say, $25 during a vacation, and let them decide how to use it. Watching the balance shrink in real time teaches budgeting far better than lectures.
Talk openly about a purchase you regretted, a budgeting lesson you learned too late, or how you recovered from overspending. Hearing that adults make mistakes and learn from them can make money conversations feel more approachable and less judgmental.
Ultimately, financial literacy is not about selecting the right app — it’s about the habits that parents model and teach. A mix of real-world practice and open conversations can give your children the financial tools they need for long-term success.
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
The Washington Post ([1]) (3); Greenlight (2); Champlain College (4); Economics of Education Review (5); Next Gen Personal Finance (NGPF) (6); CNBC (7).
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
