SISIP Financial 
Esquimalt Team

  • Children of all ages notice how you manage money, so take this as an opportunity to teach financial literacy and smart money habits. 
  • Start early by teaching age-appropriate financial habits, lead by example, and use real-life experiences to help children build long-term money management skills.  

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Whether it’s how you handle stress, treat others, or react when the bill arrives, children notice everything — including how you manage money. Here’s how to set a great financial example for kids.

Teach a Five Year Old

Children don’t read stock market reports, but they do understand cause and effect. Teach basic money habits by:

  • Explaining: Children can think money is endless if they only see a card tap. Try to narrate as you pay with “I’m using my card, but I have to pay this money back soon.”
  • Allowing choice: If a child wants a toy at the store, allow them to buy it or save for something better in the future. This teaches children about avoiding impulse purchases.

Talk to an 18-Year Old

At this age, things get real with your child’s first job, first car, and possibly their first taste of credit card debt. Teach smart money tips by:

  • Having the credit card talk: Explain how a strong credit score can help rent apartments and secure loans, but paying minimum balances can quickly lead to financial stress.
  • Reiterating the concept of interest: If they charge $500 on a credit card with 20 per cent interest and make minimum payments, it will take over nine years and $584 in interest to pay off.
  • Encourage investing and saving: Help open a Tax-Free Saving Account (TFSA) and support them in starting to consistently invest a small amount.

Have Open Conversations

Children can sometimes grow up thinking finances are a taboo topic — and then struggle to manage their money. To combat this:

  • Make it a family conversation: Instead of discussing bills behind closed doors, involve children when appropriate by using simple language and adding more specifics as they grow. Kids understand statements like “We’re saving up for something important.”
  • Give honest answers: Don’t dodge questions like “Are we rich?” and “How much do we make?” Instead, match explanations to the child’s age and level of understanding so they grow up confident, not confused.
  • Use real examples: Share a time you saved for something big or learned from a financial mistake. Stories and experiences stick better than lectures!

Be the Role Model

Realistically, you can’t teach good money habits if you’re not practicing them yourself. Here’s how to lead by example:

  • Stick to budgets: Rather than telling children to save while overspending, show them how you track your own spending, limits, and make compromises.
  • Plan: Set financial goals and stay on top of your investments, insurance, emergency fund, and more. Kids watching you plan makes them more likely to do the same.
  • Provide explanations: Kids don’t just copy actions – they absorb how you think. When saying no, explain why to help children learn to weigh tradeoffs and think long term.
  • Stay consistent: Actions add up! Whether it’s monthly investing or smart spending choices, show consistency to teach children that financial success is about good habits.

Schools don’t often teach kids financial habits, but that doesn’t mean you can’t. Book a chat with your SISIP advisor today to build a solid financial plan for both you and your family. You can also sign up to the SISIP Money Mastery portal for actionable, financial resiliency resources tailored to Defence community members.