What to do when your kids overspend: 6 practical tips for parents
Hey, $mart parents 💡
Bring money lessons home with Greenlight’s $mart Parent newsletter, a quick read with impactful tips — delivered free to your inbox weekly.
No matter how well your child seems to “get it,” there will come a moment when they overspend. Maybe they ran through their allowance on snacks and games, or maybe your teen tapped their debit card one too many times and now they’re out of money before the week is up.
It’s easy to react with frustration, especially if you’ve been trying to teach good money habits. But overspending can be one of those messy, real-world moments where lessons actually stick. What matters most is how we respond.
We asked two experts, a psychologist and a CPA, how parents can help kids bounce back and learn something valuable in the process. Here’s what they had to say.
1. Ask questions instead of jumping in
The first instinct might be to take away the card and deliver a lecture. But according to Dr. Nick Bach, clinical psychologist and owner at Grace Psychological Services, overspending often has emotional roots. “Usually, when a child overspends, the action may be related more to an underlying need for control or acceptance among peers or just to simply remain numb to uncomfortable feelings like boredom, stress, or loneliness.”
In other words, it’s not just about the hoodie or the app purchase. Try to open a conversation with something simple like: “What were you hoping would happen when you bought this?” It helps them connect their actions with feelings.
2. Go over what happened, not what went wrong
#1 family finance and safety app
If your kids are willing to talk, guide them through what led up to the purchase. When did they decide to buy? What were they feeling? What might they do differently next time?
“Sit down with the child and create a 'spending rewind' of the purchase,” says Dr. Bach. “Have them map out what led up to the actual purchase and what they might do differently next time.”
Angelo Crocco, CPA and owner of AC Accounting, suggests a written version: “Ask them to write a short 'money recap' of what they bought, why they bought it, and how they felt after. This is to nudge awareness. Kids need to see patterns to break them.”
It’s all about helping them notice habits, especially ones they don’t love in hindsight.
3. Start fresh with a simple plan
Once they’ve looked back, help them look forward. Crocco recommends three buckets: needs, wants, and later.
“Just three buckets,” he says. “Labeling their money visually with sticky notes on a wall or using jars can help them see the division, not just be told about it. This activity really sticks with younger minds.”
You can even use colored envelopes or doodled-up jars. The point is to make it tangible. Seeing money divided up helps kids make better calls.
4. Add a pause button
Delaying gratification is hard, especially when kids are used to one-click buying. But even building in a small delay can go a long way.
“Impulse control builds through repetition,” Dr. Bach explains. “I recommend testing with small, frequent challenges such as waiting for 24 hours before buying, or having to choose between two things that they want instead of getting both.”
Crocco shares a similar approach: “Anytime your kid wants to buy something over a set amount (say $10), they write it down and wait 24 hours,” he says. “You’re not saying no, just not now. This delay builds friction between desire and action, and that pause is powerful.”
For younger kids, a simple “want list” can do the trick. Revisit it weekly and talk through what’s still worth saving for.
5. Use visual goals
Helping your child set a real money goal (and picture it) can keep them focused. Instead of “just save,” make it about something they want and can visualize.
“They can go for goal-based saving jars, visual trackers, or apps like Greenlight that show kids the journey of their money and the connection between effort and rewards,” says Dr. Bach.
Crocco adds: “When a child uploads a picture of that bike or that game they want, they tie emotions to the goal. Now they're not just saving; instead, they’re working toward something they can imagine.”
The more your kid connects their money choices to the things they care about, the more motivated they’ll be to skip random purchases.
6. Focus on progress, not perfection
Yes, they might overspend again. That’s okay. “[It’s] not that this needs to be perfect,” says Dr. Bach. “It is that children learn to take a pause, think, and decide rather than reacting.”
A flawless record isn’t the win. It’s that moment when they catch themselves, even once, and make a different decision than they would have before.
How Greenlight can help avoid overspending
Greenlight is designed to support kids as they learn. If overspending is part of the journey, Greenlight gives them tools to bounce back:
Kids can set savings goals (with pictures).
Track spending over time and see patterns.
Divide money into spend/save/give categories.
Try out 24-hour rules or get parent approvals.
Learn by doing with your coaching along the way.
It’s more than a debit card for kids. It’s a chance to teach money confidence, one decision at a time.
Want money-savvy kids? Introduce them to smart money habits through hands-on learning and real-world practice with Greenlight. Try Greenlight, one month, risk-free.†
†Valid for new customers only. Subject to identity verification and minimum load requirements. Your first monthly fee will be billed to your parent wallet seven days after successful registration. To receive a refund of your first monthly fee, you must request to close your account on or before the day immediately preceding your first Monthly Billing Date. See the ‘Account’ tab of Settings by tapping the gear icon on the Greenlight app home page to confirm when your risk-free trial ends. See Terms for details.
Share via
