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Writer's pictureTerri Rimmer

The Importance of Teaching Your Children About Money

Growing up in a middle-class family in the 70s, we never wanted for anything. There was steak on the grill every Saturday night, parties in the basement, big meals at holidays, breakfast on the electric griddle at the kitchen table, plenty of Halloween candy, and we never went hungry. Money seemed endless, and there was always a sense of security when it came to our lifestyle. But what wasn’t obvious at the time was the emotional weight tied to money—the stress, the sacrifices, and how those experiences shaped our mental well-being.

Research shows that the best age range to teach kids about money is between five and seven years old. Starting those conversations early helps them avoid future financial problems, like debt and the mental toll that can come with it. A Purdue study even showed that kids can begin to understand basic money concepts as early as age three. When parents take the time to teach kids about money, they’re not just preventing financial issues down the road—they’re also helping their kids build a sense of control, which is essential for their mental health. People who struggle with financial trauma might engage in compulsive shopping, overspending, or even experience deep-seated anxiety tied to their financial situation.

At home, Mom was a tightwad, and Dad was a spendthrift. He always bought people things but never himself. He’d have the same clothes and shoes falling apart for years, but everyone else got everything they wanted for Christmas. We never knew about any financial stress, but looking back, I can see how the way my parents handled money was closely tied to their emotions. Dad would spread bills out on the kitchen table with his large calculator running tape, sighing, cussing, and rubbing his temples. It didn’t seem fun, but it never crossed my mind that one day I’d have to deal with that same stress. What I didn’t realize back then was how much financial stress can affect mental health, contributing to anxiety, sleepless nights, and sometimes even feelings of hopelessness.

Money can impact more than just your wallet—it can shape your mental health, too. As a child, I never felt poor, except for when it came to clothes. I was embarrassed about wearing certain outfits to school. I remember one friend telling me her mom said we were poor, and though that comment hurt, it also left an imprint on how I viewed money and my self-worth. Financial insecurity, even perceived, can lead to feelings of shame and stress. Over time, those feelings can contribute to mental health struggles that stay with us well into adulthood.

When I was 12, I started working summers in my stepdad’s office, and he paid me $10 a week. It felt like a lot of money at the time, and I would spend it quickly. Looking back, I realize I had no idea what money meant. And as a teenager, money was still something of a mystery. It wasn’t until I got older and faced financial hardship—bouncing checks, struggling to make ends meet—that I understood how deeply tied money was to my mental health. The stress of not having enough can create a cycle of anxiety, and the emotional toll of that is something I never truly expected.

As I moved through life, I noticed how the lack of financial education in my younger years led to poor decisions and emotional turmoil. The thrill of spending, the guilt that followed, the anxiety about bills piling up—all of it weighed heavily on me. And it wasn’t just about the money—it was about the emotional fallout that came with it. I wished I had been taught more about managing money, not just for the financial benefits, but for the peace of mind it could have brought.

Teaching kids about money is more than just giving them pocket money or showing them how to save—it’s about helping them build a healthy relationship with money that will positively affect their mental health. It’s about ensuring they don’t repeat the same mistakes and face the same stresses that many of us deal with. When they know how to handle money, they’re more likely to feel secure, confident, and less anxious when financial challenges arise.

Money and mental health are interconnected in ways we don’t always see as kids. But looking back, I see that teaching children about money early on isn’t just about financial stability—it’s about giving them tools that can help protect their mental well-being for life.

Money seems to be the albatross that has a lot of people. I have only met a couple who “had it under control” and had a sense of how to handle it.

I hope to one day be there, too.

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