How to teach kids about money: Fun & easy financial lessons

Children form their money habits earlier than many people realise. Studies show that by the age of seven, many of their financial behaviours—such as saving, spending, and understanding value—are already established.

Without early financial education, kids may grow up with poor money management skills, making them more likely to struggle with debt and saving later in life.

The good news? Teaching kids about money doesn’t have to be complicated. By using simple, hands-on activities, parents can help children develop smart financial habits from an early age.

1. Introduce the concept of earning money

Before children can learn about saving or spending, they need to understand that money is earned.

✅ Give them small jobs around the house in exchange for pocket money.
✅ Encourage creativity – Let them sell homemade crafts or baked goods.
✅ Explain where money comes from – Show them how parents work to earn a salary.

📌 Fun activity: Give your child three jars labeled "Spend," "Save," and "Give." Every time they earn money, have them divide it between the three categories.

2. Teach the importance of saving

Saving money isn’t always easy for kids, but setting a realistic goal can make it more exciting.

✅ Help them choose something specific to save for (e.g., a toy, a game, or a book).
✅ Use a visual savings tracker (like a chart or piggy bank) to show progress.
✅ Open a children’s savings account to introduce banking early.

Offer small rewards when they reach their savings goal to reinforce the habit.

3. Introduce smart spending habits

Learning how to spend wisely is just as important as saving.

✅ When shopping, let them compare prices and choose between items.
✅ Give them a weekly allowance and let them decide how to spend it—but once it’s gone, it’s gone.
✅ Discuss needs vs. wants to help them make better financial choices.

💡 Pro Tip: Encourage delayed gratification by teaching them to wait before making a purchase.

4. Make financial lessons fun and interactive

Children learn best through play and real-life experiences.

✅ Use games and apps that teach money management.
✅ Play "grocery store" or "bank" to help kids understand transactions.
✅ Let them help budget for a family outing (e.g., choosing snacks for a picnic within a set budget).

💡 Pro Tip: Incorporate money lessons into daily activities—even a simple trip to the supermarket can be an opportunity to talk about prices and budgeting.

📌 Takeaway: teaching kids money lessons for life

✅ Start teaching money basics early through everyday activities.
✅ Encourage saving, earning, and smart spending habits.
✅ Lead by example—children learn best by watching their parents.