Teaching kids about money

Talking openly to your kids about money, and involving them in financial decision-making, can build their confidence from a young age.

You could start this from as young as 3, as they become more curious about the world around them. And it shouldn’t be a one-off event – try to include money in your daily conversations.

Try showing different coins, notes and bank cards to your little ones to bring spending and saving to life.

It could teach the importance of keeping money safe so they don’t lose it. And you can help them understand how different things cost different amounts.

It’s helpful to explain the differences between spending and saving money. It means your children can start making choices about whether to spend what they’ve already got – or save towards something bigger.

Remember that saving money for kids doesn’t have to be complicated. For example, piggy banks are a classic way for children to put pennies aside.

Sometimes it can feel like kids are oblivious to money. But giving them the chance to earn it might change all that.

There are lots of ways for children to make money. You could set them age-appropriate chores in exchange for pocket money. Like helping around the house, babysitting, or collecting groceries for family or neighbours.

Or what about selling unwanted toys, clothes and games online (with parental supervision of course)? Find what works for your family.

Budgeting tips for kids can go further than basic spending and saving. You could also encourage them to find the best deals by shopping around and comparing prices.

It’s worth chatting about the claims and promises made by adverts too – and how the reality might be different.

If your kids are regularly asking to borrow money from you, it’s worth having an open and honest discussion.

Explaining the pros and cons, and how interest works, might encourage more informed decisions in the future when it comes to mortgages, loans or credit cards. Understanding responsible borrowing could be among the most important money lessons for your kids.