From talking points to savings goals, here’s how to educate your little spenders about financial matters
According to the Money and Pensions Service, children have well-developed attitudes towards money by the age of seven. Yep, by the time they’ve mastered tying their laces, they’ve already absorbed ideas about saving, spending, and whether it’s OK to ask for that overpriced toy in the gift shop.
I remember my own five-year-old locking eyes with a plastic periscope at a waterpark – one with a price tag that made me do a double take. We didn’t say no. Instead, we said: “You can buy it, but it’ll come out of your allowance.” That meant no sweets for the rest of the week, and he knew it. But it was his choice – and that’s the point.
Teaching kids about money isn’t just about coins and piggy banks. It’s about helping them understand value in a world where things magically arrive at the door with a tap on a phone screen. It’s an abstract concept to try to communicate, but when we give our kids the tools to make mindful choices, we’re not just raising savvy spenders – we’re raising future adults who know how to navigate the financial world with confidence.
The benefits of money transparency
No one’s saying your child needs a pension tracker, but starting early goes a long way. Talking transparently about cashflow doesn’t have to be boring. In fact, it can be wildly engaging, while actively boosting your children’s problem-solving skills.
“Talking openly about money helps take the mystery out of it for children,” explains Samantha Hoyle, a chartered accountant and financial strategist at Harmony Accounting. “But when we treat money as something secret, or stressful, kids will pick up on that. So if we weave money chat into everyday life, like explaining how contactless payments work or showing them how we compare prices, they can start to see money as a tool, not a taboo subject that can’t be spoken about.”
Ask the important questions
A great way to kick off money conversations is by asking kids what they think. Questions like: “How many pound coins make £100?” or “What do you think money is used for?” gets their cogs turning. You’re not just testing their knowledge, but opening the door to a bigger and more meaningful chat, without it feeling like a lecture. Plus, you might be surprised by their answers. Some children might think that ‘money comes straight from the wall’ or ‘you just tap your phone’. These are great opportunities to explore the topic more deeply.
Involve them in financial decisions
Once a general understanding is formed, you can consider talking more openly about how it could be earned as pocket money. Simple tasks like putting cutlery away, or tidying away their toys, will give them a proud sense of ownership.
“One common obstacle is that many of us weren’t taught how to manage money ourselves, so we don’t always feel confident passing those lessons on to our children,” says Samantha. “But the best thing we can do is let our kids learn alongside us.”
Samantha suggests helping them set a savings goal for something they really want, like a toy, or a day out. “Use a clear jar or savings tracker, so they can physically see their money grow, as this makes the process visual and rewarding. Another idea is giving them a small budget for a family activity, like a movie night. It teaches decision-making, planning, and that money isn’t just for spending, it is something we can use intentionally to have a joyful experience together.”
Try an age-appropriate money app
Depending on how old your child is, you might want to let them experience having a bank account or money app. Many banks will let children open a current account from the age of 11, and apps like NatWest Rooster Money or GoHenry are readily available to give kids a powerful visual to track their money.
For older kids, apps like Hyper Jar or even Starling Kite can introduce more complex saving and spending tools, with the benefit of having full parental oversight. Rest assured, kids’ bank accounts don’t come with overdrafts, so there’s no danger in spending more than they have.
Teach them to wait
Delayed gratification is one of the most valuable money lessons a child can learn – and the earlier, the better. When your little one spots a must-have toy mid-supermarket meltdown, try saying: “Let’s take a photo and add it to your birthday or Christmas list.” It’s a gentle way to introduce the idea that not everything has to be bought right now.
You can also weave in money lessons through everyday play, with the board game Monopoly, pocket money jars, or kid-friendly apps that simulate real-life spending.
These small, consistent habits lay the groundwork for a healthy relationship with money, so go ahead and cash in on those teachable moments. Your future financially-savvy grown-up may just thank you for it.
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