Understanding Your Child’s Financial Personality
A few months ago, a mom shared a story that stuck with me. She gave both of her kids ₦5,000 each as a reward for doing well in school. Her daughter immediately started making a list of things she wanted to buy—Oreos biscuit, a new key chain, and a small gift for her best friend. Her son, on the other hand, folded the money neatly, placed it in a piggy box under his bed, and refused to spend a single Kobo.
Curious, she asked them why. Her daughter said, “I worked hard, so I deserve to enjoy my money.” Her son simply said, “I don’t want to waste it. What if I need it for something important later?”
This story perfectly highlights something most parents notice but don’t always think about—every child has a unique way of handling money.
Just like adults, kids develop financial habits based on their personalities, experiences, and what they learn at home. The challenge for parents is figuring out how to guide them based on their unique personality.
In this post, we’ll explore the different financial personalities kids can have, how to recognize them, and most importantly, how to help them find balance.
5 Common Financial Personalities in Kids
Every child interacts with money differently. Understanding this helps you recognize their natural tendencies and guide them toward a balanced and healthy approach to money. Here are the five most common financial personalities in kids and how you can support them.
1. The Saver
The Saver is the child who holds onto money like a prized possession. They rarely spend impulsively, and when given money, their first thought is to store it away for later. They enjoy watching their savings grow and often feel a sense of security in knowing they have money set aside.
Strengths:
They understand the value of saving from an early age.
Challenges:
They may develop an unhealthy fear of spending, even when necessary.
How Parents Can Help:
Encourage them to set savings goals for meaningful purchases so they see that spending can be intentional, not wasteful.
2. The Spender
The Spender sees money as a way to enjoy life. They love the thrill of buying new things and often find it hard to resist spending as soon as they receive money. They tend to focus on short-term gratification rather than long-term savings, and budgeting might feel like a burden to them.
Strengths:
They have an optimistic outlook on money and don’t stress too much about it.
Challenges:
They may struggle with saving or planning for the future.
How Parents Can Help:
Teach them the importance of delayed gratification by helping them save up for something they really want.
3. The Giver
The Giver finds happiness in using money to help others. Whether it’s sharing their pocket money with a friend, buying gifts for family members, or donating to a cause, they feel deeply satisfied when they can make someone else happy. However, they may struggle to set boundaries and sometimes give more than they should or even borrow to give.
Strengths:
They are likely to build strong social connections because of their kindness.
Challenges:
They may give away too much and neglect their own financial needs.
How Parents Can Help:
Teach them the importance of planned giving—setting aside a specific portion of their money for generosity while still saving for personal needs.
4. The Risk-Taker
The Risk-Taker is the child who isn’t afraid to take chances with money. They might use all their savings to start a small business, enter competitions, or invest in things they barely understand. They are often drawn to opportunities that promise high rewards, and they enjoy experimenting with different ways to make money.
Strengths:
They are entrepreneurial and creative in making money.
Challenges:
They might struggle with patience, expecting quick returns on investments, making them targets for Ponzi schemes.
How Parents Can Help:
Teach them about calculated risks—how to research and assess potential opportunities before diving in.
5. The Avoider
The Avoider is the child who prefers not to think about money at all. Whether it’s managing allowances, saving up for something, or even discussing finances, they tend to shy away from money-related topics. They may feel overwhelmed by financial responsibility or simply uninterested in the subject.
Strengths:
They are less likely to stress over money.
Challenges:
They may struggle with financial responsibility in adulthood.
How Parents Can Help:
Make money conversations fun and engaging—using games, challenges, or storytelling.
Raising Financially Confident Kids
Every child has a unique relationship with money, and no financial personality is better or worse than another—the key is helping your child find balance so they grow into a financially responsible adult.
As a parent, you don’t have to be a financial expert to teach your child about money. It’s about guiding them through real-life experiences, leading by example, and creating an environment where financial discussions feel natural and open.