Hello Wealth Tablers!
We are still in Financial Literacy Month and Kimberly and I (Kathryn) wanted to share some ideas for parents. I happened to see an interesting reel on Instagram that sparked this conversation. It was from @dinnertablefamily (follow them on IG or join their community at The Dinner Table.
The biggest takeaway we had was the concept of the “Family Economy.” It’s a powerful framework for raising financially responsible children who understand not just how to manage money, but how to create value.
The Family Economy: More Than Just Chores
The Family Economy is a mini economic system within your home where children learn to contribute meaningfully and receive compensation for their efforts. Unlike basic allowance systems, this approach teaches children that money comes from creating value for others.
This system works because it mirrors real-world economics: family members contribute value through work and receive compensation that they can then manage, save, or spend. Children learn they're not entitled to money—they earn it through genuine contribution.
Teaching Value Creation
At the heart of financial education is helping children understand that money represents value exchanged. When children grasp this concept, they begin to see opportunities everywhere:
Contribution at home: Children learn that helping around the house isn't just about completing tasks, but about creating value for the family unit
Entrepreneurial thinking: Encouraging children to identify needs they can fulfill develops their ability to spot opportunities
Problem-solving skills: When children connect solving problems with creating value, they develop a mindset that serves them throughout life
Implementing Your Family Economy
Define value-creating work: Distinguish between basic responsibilities (making beds, personal hygiene) and value-creating contributions that deserve compensation (yard work, helping with younger siblings, etc.)
Establish fair compensation: Set reasonable "wages" for different types of work, increasing responsibility and pay as children grow
Create regular paydays: Weekly or bi-weekly paydays create structure and teach children to budget between income periods
Teach the three-jar system: Help children divide earnings into saving, spending, and sharing categories
Coach rather than control: Guide children's decisions without dictating every financial choice—allow them to make small mistakes and learn from them
Beyond the Basics
As children grow, expand their Family Economy participation:
Involve them in family financial discussions at an age-appropriate level
Help them open a real bank account and teach them about interest
Encourage micro-entrepreneurship outside the home—lemonade stands, pet sitting, or lawn care services
Discuss the concept of investment and how money can work for them
The Lasting Impact
When children learn to create value and manage money within a Family Economy, they develop confidence, resourcefulness, and financial literacy that will serve them throughout life. They understand that financial success comes not just from careful management of resources, but from actively creating value in their communities.
This approach transforms money from a taboo topic into a natural part of family life, preparing children for financial independence while instilling values of contribution, responsibility, and thoughtful stewardship of resources.
When we say that “everyone has a seat at The Wealth Table,” we mean everyone - kids included!
To your prosperity,
Kathryn & Kimberly
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