Who’s going to pay for that?

One of the trickiest parts of teaching kids about money is knowing when to step in—and when to step back. As parents, we naturally want to say yes when our kids ask for something they really want. But talking about who pays for what can be a powerful way to build financial awareness, responsibility, and even gratitude.

Many families develop unspoken rules: “We’ll cover necessities, but you’re on your own for extras.” Or maybe: “We’ll buy it if it’s educational, but toys and games come out of your allowance.” These distinctions help kids understand that not all spending is equal, and they start to learn how to prioritize their own wants versus needs.

Setting clear boundaries and expectations ahead of time can prevent conflict and give kids the chance to practice making real choices with their money. If they really want that new gadget, they might save up—or realize it’s not worth it after all.

By involving kids in these decisions and making the criteria transparent, we’re not just managing purchases—we’re giving them the tools to manage money for life.

What’s your family’s approach to “who pays”?