Episode•May 4, 2023•24 min

The BEST Advice For Teaching Kids About Money | Ep. 226

Every parent wants the best for their kids, but teaching them about money management can be daunting. In this interview, Clifton Corbin reveals his BEST advice on successfully talking to young children about money. Learn how you can help your kids become financially savvy and make smart decisions about their future. Get the answers now and give your kids a head start on their financial journey! About Our Guest Clifton D. Corbin is a Registered Financial Consultant (RFC®) who leverages his extensive knowledge of economics, finance, and business to help others achieve their financial goals. With over 20 years of experience managing million-dollar budgets and an MBA, Clifton has devoted himself to educating and guiding the public on how to make sound financial decisions. His mission is to create a supportive community where people can empower themselves with the knowledge they need to succeed in their personal finances. Clifton’s inclusive approach, along with his warm and inviting attitude will help you feel comfortable while learning how to plan for your future. Connect With Clifton Kid's Book: kidsmoneyworkbook.com Website: CliftonCorbin.com Instagram: cdcorbin_ Facebook: Clifton D Corbin Twitter: cdcorbin This podcast uses the following third-party services for analysis: Podcorn - https://podcorn.com/privacy OP3 - https://op3.dev/privacy

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Key Takeaways

1
Start money conversations when children show natural curiosity (typically ages 3-5)
Use real transactions like grocery store visits as teaching moments
Explain money as a 'trade' — trading time for money, then money for goods/services
Role-play with pretend stores and restaurants to build comfort with money concepts
2
Allowance should focus on practice, not chores
Guideline: 50 cents to $1 per year of age (e.g., $3–$5 for a 5-year-old)
Use the three-jar method: Save, Spend, Give/Donate
Tying allowance to chores creates lose-lose situations; chores still need doing even if allowance is withheld
3
Give kids opportunities to practice real decisions with money
Split gifts: half for spending, half for long-term savings/education fund
Be transparent about education savings so kids feel ownership
Allow natural consequences (e.g., spending all birthday money) as learning moments
4
Use play money and games until children have basic math skills
Monopoly and pretend cash registers help practice counting and transacting
Free workbook with printable money available at cliftoncorbin.com/workbook
Wait until kids can count and manage money before giving real allowance

Intro

Host Tiff interviews Clifton Corbin about teaching young children (ages 4-8) foundational money concepts in an accessible, age-appropriate way.
Clifton D. Corbin is a Registered Financial Consultant (RFC®) with over 20 years of experience managing million-dollar budgets. He authored 'Your Kids, Their Money' and runs kidsmoneyworkbook.com.

Website Kids Money Workbook Instagram Twitter

– When to Start Talking About Money

Begin when kids notice money and ask questions—usually around ages 3–5. Use their natural curiosity as the signal rather than a fixed age.

Use your kid's natural curiosity and your kid's natural interest to be the gauge of when you should start talking to them.
– Clifton Corbin

– Explaining Money Through Real Transactions

Break down debit/credit card use at the grocery store. Frame money as a trade: time for money, then money for goods and services.

This is a trade... I trade my time to get money. And then I trade the money to get our groceries.
– Clifton Corbin

– Role-Playing and Play Money

Set up pretend grocery stores or restaurants. Use printable play money from the free workbook to practice transactions.

Money identification
Understanding trade
Comfort with handling money

– Money Identification and Allowance Basics

Start with coins and bills, then progress to checks and bank transfers. If kids can count, introduce a small allowance ($0.50–$1 per year of age).

If they're five years old, you're giving them anywhere from $2.50... up to $5. That's kind of the baseline.
– Clifton Corbin

– Allowance vs. Chores Debate

Don't tie allowance to chores. The goal is practice with money; withholding allowance for unfinished chores removes that practice opportunity.

If you don't tie that activity to a chore, I wouldn't tie the allowance to a chore.
– Clifton Corbin

– Handling Gifts, Tooth Fairy Money & Birthdays

Negotiate splits: half for spending, half for long-term savings/education. Be transparent about education funds so kids feel ownership.

My kids know how much money they have saved up to go to college... They know they've got thousands of dollars. That is actually theirs.
– Clifton Corbin

– Teaching Saving Through Opportunity Cost

Frame saving around future opportunities (movies with friends, battle pass) rather than abstract retirement concepts. Natural consequences reinforce lessons.

Books Mentioned

Your Kids, Their Money by Clifton D. Corbin

Resources

Topics

kids and moneyallowancefinancial educationparentingmoney conversationssaving habitsrole-playingthree-jar methodtooth fairy moneyearly childhood finance