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How to Teach Kids About Money (Without the Lectures!)

How to teach kids about money

Wondering how to teach kids about money without making it boring for them or overwhelming for you? Grab a cuppa and read on.

If there’s one life skill I wish I learned younger, it’s how to manage money. As a single mum raising two cheeky yet curious little humans, I’ve come to realise that teaching kids about money doesn’t have to be a full-blown economics lesson; it can be part of everyday family life. From using a coin bank to letting my eldest help with the electricity bill, I’ve picked up some surprisingly simple tips for teaching kids that actually stick.

How to Teach Kids About Money (The Basics)

The Right Age for Kids to Learn About Money

There’s no perfect age and stage, but I started when my eldest was four. Kids are curious from an early age and pick up on financial situations quicker than we think. If they can ask, “Why do we need money to pay for ice cream?”—they’re ready to learn about money. The trick is to match your approach to their age, just like you would with chores or bedtime routines.

Financial Literacy Through the Power of Pocket Money 

Giving my girls pocket money was a game-changer. It gives kids their own little economy to manage. I started with $2 a week, and we had chats about what they could use the money for and what they should save. It’s one of the most hands-on ways to teach kids real-life money lessons. Bonus: It helps reduce those mid-aisle meltdowns over toys at Kmart.

How to Teach Kids About Money (The Specifics)

Spending Habits: Teaching Needs and Wants

I still hear, “But I need this toy!” Cue deep breath. One way to teach them about needs and wants is by letting them decide how to spend their own money. If they blow it all on lollies and have nothing left for the toy they really wanted, that’s a lesson learned. Trust me, natural consequences are better than lectures.

Money Management: Giving Kids a Budget

Absolutely. A simple budget can be as easy as three jars: spending, savings, and giving. My kids love decorating their jars, and it helps them visualise how money goes and how money grows over time. They now set savings goals for things they actually care about, like a scooter or a birthday gift for a friend.

How to Teach Kids About Money (The Big Leagues)

I keep it age-appropriate but honest. When I recently switched power companies, I showed my daughter the electricity bill and explained how we make money decisions based on our financial situation or needs. We also talk about how credit cards aren’t “free money.” These conversations build their financial literacy bit by bit and help them understand how money works in the real world.

FAQs: How to Teach Kids About Money

How to do pocket money for your kids the right way | Beanstalk Mums

Can Chores Teach Financial Responsibility?

Yes, but with a twist. We don’t pay for every task (some are just part of helping the family), but we do offer bonuses for extra jobs like washing the car or weeding the garden. It teaches that money comes from effort, aka hard-earned, and that there’s a link between work and reward. Plus, they start appreciating the value of their coin collection.

How Can You Make Budgeting Fun for Kids?

Turn it into a challenge. We’ve had “$5 snack shop” days where they have to plan a budget and stick to it at the shops. Or I’ll offer to match their savings if they reach a target. Not only does it teach money management, but it’s a sneaky way to build their planning and budgeting skills, too. And they genuinely love the feeling of control.

Do Kids Need to See How Money Is Used?

Definitely. Seeing me tap my card doesn’t teach much. So we use coins and notes for things like the Sunday markets or school canteen. It’s a concrete way for them to see money go, and to feel it disappear if they spend too quickly. It’s also a great lead-in to explaining spending and saving choices.

What’s a Good Way to Get Kids Involved with Family Finances?

Nothing fancy, just invite them in. Ask them to help compare prices at the supermarket or choose between eating out or a pizza night at home. These small moments help kids get involved, understand things money can buy (and can’t!), and build a healthy relationship with money early on.

You can also enrol them in Capabilite Financial Wellbeing Courses.

Should Older Children Use a Money App?

how to teach kids about money

Once they’re confident with cash, a money app can help older children manage their allowance digitally. Apps like Spriggy or ZAAP let you track spending habits together and teach smart financial habits in a modern way. Just be sure they understand it’s real money, not game points.

What Happens When They Get Their First Job?

That’s a proud moment. With my teen’s first job, we talked about budgeting, savings goals, and how to manage their money wisely. We even discussed financial advice for long-term things like super and tax. I try to avoid being overbearing, but I do throw in the odd “Don’t blow your whole pay at the shops!” now and then.

Quick Tips to Encourage Smart Money Habits in Kids

  • Encourage your kids to split money into save/spend/give
  • Get a piggy bank going
  • Let them make some small mistakes
  • Always talk about money openly
  • Use real-life examples when possible
  • Show them how to budget, not just tell them
  • Model good money habits yourself 
  • Celebrate their financial success, even the tiny wins

Final Thoughts: How to Teach Kids About Money

At the end of the day, my goal wasn’t to raise tiny accountants; it’s to help my girls grow up with confidence in how they manage money. You can make use of whatever suits you and your kids best. It can be through a piggy bank, a budgeting app, or chats during dinner. There are plenty of tips for teaching kids that don’t require a finance degree. Just start small, be honest, and let them get involved in your everyday family life. The more you teach kids about money now, the better prepared they’ll be later in life. And honestly? That’s one lesson that will always be worth the investment.

how to teach kids about money

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Sally Love

About the author

Sally Love is a pseudo single mum author who has been writing about single motherhood, separation and divorce for 8+ years. She has been a single mother for 10+ years and has two daughters, one of whom she co-parents and the other she solo parents. Sally has experienced all aspects of single motherhood from legal, financial, parenting, dating, travel as a single parent, re-partnering and re-building a career. She is an integral part of the Beanstalk community chatting and helping single mothers across the globe, as well as sharing her expertise, experiences and genuine reviews with major national newspapers and appearing on nation-wide television shows.

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