How to teach your kids about money at every age

Estimated reading time
 5 min

Learn how to

• Teach your little ones the financial basics
• Explain the importance of budgeting and goal setting
• Introduce financial wellbeing to teens

There’s no time like the present to teach your kids all about money – how to earn it, save it, be smart with it, the whole thing.

As long as your child has a general understanding of math (like counting or adding), then you can start educating them on the financial basics. And you don’t need to be an expert to do it! Whether it’s playing shop with your tiny tot or setting savings goals with your tween or teen, we’re going to show you how to help your child ace their financial literacy.

What to teach kids in kindergarten

The 3- to 5-year-old age range is the perfect time to introduce some financial basics. Now is the time to get them familiar with a concept that will play a big role in their everyday lives. Here are some fun activities you can do at home with your little ones:

• Counting games: Lay out a line of objects (like chocolate chips), then point and count them. Get your child to count with you, then ask them how many objects there are. Gradually level up your child to counting coins and cash – introduce the specific values to them when they’re a little older.
• Play shop: Set up a mini shop at home and encourage your child to buy or sell items from around the house, like empty food cartons or small toys. This can help introduce the value of money to your child, even if they don’t fully understand it yet.
• Use free online educational videos: A quick search online can help you find free, educational videos that make counting entertaining for your little ones.

What to teach early primary school kids

When your kids start primary school, they might learn more about money from the world around them and start developing an understanding of it.

• Wants and needs: Teach your child how to differentiate between a want and a need. Get on their level and use examples that make sense to them so the information sticks. For example, you can explain that buying a chocolate bar is a want but buying a loaf of bread is a need.
• The value of money: Explain that money is earned through work, a job, or a task, and introduce different ways for your child to earn money around the house, like helping out with small chores.
• Smart saving: As your kids earn money from housework or other little tasks, teach them the saving basics. Set up a piggy bank, savings jar, or use a pocket money app to help your child save their cash for their goal or a rainy day (which you can explain as ‘just in case’ money).

What to teach tweens

As your tween starts earning more money around the house or through odd jobs in the neighbourhood, it’s a great time to teach them about budgeting and goal setting.

• Budgeting basics: When you’re mapping out your budget, get your tween in on the action. Explain to them how you split your income and why. If you want to make a budget from scratch and show your tween how it’s done, you can use our budget planner tool.
• Setting goals: Ask your child what they want to work towards financially. Do they want to buy the latest phone or tablet? Or would they like to reach a certain amount in savings? Help your child set a goal (you can use our savings calculator if you need a hand) and encourage them to stick to it.

  Brain hack

If your kids are smashing their savings goals out of the park, then consider rewarding their hard work through the power of incentivisation. Whether it’s matching their savings or giving them a little reward that celebrates their achievement, you can help them stay motivated.

What to teach early teens

When your tween becomes a teen, their entire world opens up – they might spend more time with friends outside of school, develop unique interests, and crave a little bit of independence.

• Find the right bank account for them: Your teenager might be eligible to open their own bank account, which can give them lots of responsibility. With a bank account, teens can learn how to manage their own money, grow their savings, and navigate banking apps. Remember to research the fees and T&Cs to work out what is right for your family.
• Responsible saving and spending: Encourage your teen to split their pocket money into three categories: save, spend, and share. The ‘save’ portion will encourage your teen to work towards a financial goal. Spend gives them a small allowance so they can treat themselves, and the sharing can be spent on others (like a gift for a friend) or donated to a charity they’re interested in. If they’re not sure what to do with their share funds, they can pop them into their savings.

What to teach older teens

As your teenager slowly moves into adulthood, they’re most likely thinking about the future and working a part-time job. Now is the time to teach them:

• Financial wellbeing: Understanding the basics of financial wellbeing can help your teen become more financially aware and resilient in the future.
• All about credit and debt: Get them up to speed on the idea of credit (loans or credit cards) and debt (like HECS), how debt works, and what they can do to manage it in the future.
• Set bigger goals: Now is the time to start helping your teenager set bigger financial goals that they can work towards as they become adults. This might be buying their first car, moving out of home, or funding a business venture. You can also help your child track and visualise their goals to boost their motivation (which is called the goal gradient effect!).

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