Teaching kids about money

Whether they’re tiny tots or teenagers, it’s never too early or too late to teach your kids some money skills. From playing shops and counting coins with your little ones to giving them pocket money and showing them the art of budgeting, there are plenty of ways to make financial education fun.

Teaching kids about money has some significant benefits. Learning about money will help to demystify finances, giving them the skills and confidence they’ll need to manage their money now and in the future.

It doesn’t need to involve complicated financial terms or hours of maths. In fact, by making things relevant and light-hearted, those money lessons are much more likely to stick. Here are some ideas on how to talk money with your kids, whatever their age.

Preschool

Introducing children to money should be enjoyable, with plenty of games such as playing shops, coin rubbing and making pictures with coins. These activities will help them understand the concept of money and be able to recognise different coins.

A trip to the shops or the supermarket presents more learning opportunities. They could help find the cheapest items, look for something that costs 50p, or check everything on the receipt. This helps to teach them how the prices of different things vary, which can be a valuable first step into saving and budgeting.

It’s also good to show kids that money is valuable and needs to be kept safe. Getting them a purse or piggy bank will encourage them to look after their pennies.

Primary school

Giving your children weekly pocket money is a great way to build financial confidence. Talk to them about what they want to spend it on too, as this can teach them about budgeting.

Whether they want to blow it all on sweets or save for a pony, you might want to open a savings account for them. This will show them how money can build up over time, making it easier to save for something more expensive.

It’s also good to keep it exciting. Get them involved with the weekly shopping, setting a budget or asking them to find ways to save the family money. At home, nothing beats a game of Monopoly to nurture their financial skills, even if the property prices are well out of date!

Secondary school

Your kids and their financial needs will have got bigger when they reach secondary school, but it’s a great time to help them learn some valuable money skills.

With so many demands on their money, budgeting skills are a must. A budgeting app can help them manage their pocket money, showing them the importance of putting a bit aside for future needs.

As well as pocket money, you might want to give them the opportunity to earn some extra cash by taking on some additional tasks around the home. Children can work part-time from the age of 13 too, with popular jobs including paper rounds, babysitting and, for older kids, working in shops and cafes.

You can also teach them about comparison websites and the importance of shopping around for the best deal. Offering them a cut of any savings they make can be a powerful incentive.

Educating your kids about money can be fun as well as giving them some important skills for life. More information on money and children can be found on the government’s MoneyHelper website.

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