Building financial futures: why teaching kids about money matters

“Financial literacy is one of the most valuable skills you can teach your children. Starting early helps kids develop healthy money habits, understand the value of money, and make informed financial decisions as they grow.

“While technology means that the future of banking and money might look completely different from the systems and tools we use today, there are still foundational concepts you can teach your children to guide them toward financial confidence and responsibility,” said Ms Power.

To ensure your children have the foundations to a strong financial future, Jessica shares her top tips, which include:

1. Start with the Basics

“Young children can grasp simple financial concepts like earning, saving, and spending. Use everyday activities to introduce these ideas, such as playing money games like Monopoly or apps specifically designed to teach kids money basics.”

2. Talk about money openly

“Do you remember how you first started learning about money? Money can feel like a taboo topic in a lot of households and cultures. While money conversations can feel intimidating, you don’t have to be a money expert to teach your children invaluable lessons about personal finance. These conversations don’t have to be serious - an easy example is if you’re buying something for them, such as toys or clothing, you could get them involved in research and price comparisons.”

3. Teach the Importance of Saving

“Help kids understand why saving is important and how it works. Encourage them to set aside money for things they want rather than spending it all immediately. And if you can afford it, offer to match their savings or a percentage of what they save to encourage long-term goals.”

4. Introduce Budgeting

“As kids get older, teach them how to plan their spending. This can help them prioritise needs over wants. Break their money into categories and encourage kids to divide their money into saving, spending, and giving.”

5. Explain Earning Money

“Teach kids that money is earned through effort and work. This helps them value what they have and think critically about spending. Discuss the value of work, explain how your own job or business generates income, and create earning opportunities for them by assigning age-appropriate tasks.”

6. Teach About Digital Money

“In today’s increasingly cashless world, kids also need to understand how digital payments work. This includes debit cards, online purchases, and mobile wallets. As well as discussing digital money management, discuss online safety. Teach them to protect their information and how to avoid scams.”

7. Lead by Example

“Kids learn a lot from observing their parents’ habits. Demonstrate responsible financial behaviour, like budgeting, saving, and thoughtful spending by involving them in family budgeting. Show them how you plan for expenses like groceries or holidays and be transparent about financial decisions. Explain why you make certain choices, such as buying a cheaper brand or saving for a bigger goal.”

Teaching kids about money early lays the foundation for financial independence and success. By starting small and building on their knowledge as they grow, children can be empowered to make confident and informed decisions about money in the future.