Teach your kids about money: 4 easy tips for parents

Estimated reading time
 5 min

Learn all about

• Why talking to your kids about money is important
• Making learning about money fun and engaging
• Giving your kids a clear reason to save their money

There are many things to teach your kids. Walking, talking, reading, writing, empathy, managing screen time, mental health – the list goes on!

But what are you teaching your kids about managing their finances? Money is integral to our lives, so teaching kids the financial basics can shape their relationship with money and make a big difference when they get older.^disclaimer

There’s no better place to learn about money than at home. In this safe space, you can educate your kids on the basics and make it fun by using items around the home.

If you’re not sure where to start, we’ve got you covered. Here are four easy tips to help you teach your kids about money.

1. Talk about money at a young age

Talking about money can be an uncomfortable topic, but that shouldn’t be the case with your kids. Start the conversation when they’re young enough to understand money (around 7 to 10 years old) and create a safe environment for your kids to learn.

Be honest about money but try not to burden them with money challenges you might be facing, such as repaying debt or having to tighten your budget.

If you’re stuck on what to talk about, here’s a quick list of topics to get the conversation going:

• The financial basics, such as explaining what a savings account is, and some common money terms.
• The difference between a need and a want. This can help your kids become smart shoppers and savers.
• The value of money and where it comes from. Explain that money is earned through work, a task or a job. And sometimes, you might receive money as a special gift.
• Their saving goals. Ask your child what they want to use their money for and how they plan on reaching their goals. We’ve got a handy goal-setting sheet for kids that you can use.
• The family budget and how you divvy up your money to pay for different things.
• Why you might say ‘no’ if they ask you to buy something.

Read more about how to talk to your kids about money

2. Make learning fun and engaging at any age

Learning about money can be a tough sell for any kid – no matter their age. That’s why it’s a good idea to make it fun, engaging, and relevant to your kids.

Here are a few of our go-to tips to take your child’s money-education to the next level:

• For the little ones: Make coin caterpillars by lining up coins in the order of their value from smallest to largest.
• For the under 10s: Do an online banknote puzzle together.
• For the tweens: Turn pizza night into an opportunity to learn about budgeting.
• For the teens: Use our teen-friendly budget tracker (PDF) to help your kids set a goal and work towards it. New phone anyone?
• For all ages: Run a savings competition between your kids (or with your child and yourself).

Read more about how you can teach your kids about money at any age

3. Help them save when they start earning money

Whether it’s pocket money or getting a job, teach your kids how to save smarter when they start earning money. Sit down with them and help them set a SMART goal. SMART goals are Specific, Measurable, Achievable, Realistic and Timely. See what we did there? Here’s how to break it down:

• Specific: What does your child want to achieve with their money?
• Measurable: How much will your child need to save or spend to reach their goal?
• Achievable: Is the goal a stretch but still possible?
• Realistic: Would they rely on pocket money, their part-time job, or birthday cash to hit their goal?
• Timely: When does your child want to reach their goal?

There are apps for managing pocket money and savings that have been designed for kids helping them set a savings goal they can work towards. Alternatively, you can download our SMART dream board (PDF) to help them keep their eyes on the prize.

You can also try using incentivisation to keep them on track with their savings, which is when you attach a reward to a positive behaviour. For example, if your child hits their savings goal, you might match that amount or give them a small treat to celebrate their milestones.

Read more about how you can teach your child to be a savvy saver

4. Find the right bank account for them

When your child enters their teenage years, it might be a smart idea to open a bank account for them. This can help your child learn basic money management skills, such as saving and tracking their spending, and put them on the path towards good financial wellbeing in the future.

Plus, they might be able to earn interest on their money which can encourage them to keep saving.

Remember to research the fees and T&Cs to work out what is right for your family.