Financial literacy from a young age is one of the most important life skills we can pass on. It doesn’t need to be complicated to teach kids about money, but it should be intentional – and consistent. Financial planning is not just about dollars and cents; it’s about habits, values, and confidence. The earlier children learn how money works, the better equipped they’ll be to make confident, informed decisions later in life.
As adults, many of us were taught that money was a “grown-up” topic, so talking to your kids about money might feel awkward. But with cashless transactions, online shopping, and digital pocket money apps becoming the norm, today’s kids are growing up in a very different world, one where understanding digital money is as important as counting coins. And just like healthy eating or good hygiene, financial habits start at home.
So how do you raise financially literate kids in a world where money is increasingly invisible? Let’s start with why it matters.
Why teach kids about money?
We live in a world where it’s easier than ever to spend money… and harder than ever to understand where it goes. Digital wallets, tap-and-go, buy now pay later, in-app purchases – these are all part of modern life. But they can make it tricky for children (and even adults!) to connect spending with value.
Kids form money habits earlier than most people think – some research suggests as early as age 7. Without guidance, children can grow up with unrealistic ideas about where money comes from and how it should be spent.
Being open and transparent about money helps kids:
• Understand the value of money
• Make informed decisions
• Develop a sense of responsibility
• Build confidence and independence
It’s not about putting adult pressure on them; it’s about equipping them for life. Building financial literacy early can reduce the risk of debt and overspending in adulthood and help our kids to develop long-term thinking and goal-setting.
Just like reading and maths, understanding money is a life skill. The sooner we start, the more natural it becomes.
Money lessons for kids: Age-by-age guide
Every child is different, but here are a few general ideas based on age:
• Preschool (3–5): Start with identifying coins and notes, and introduce the idea of saving in a clear jar.
• Primary school (6–12): Understand budgeting through fun ways to teach kids about money like pocket money systems, setting small goals, and using money games for kids.
• Teenagers (13+): Help them open a bank account, understand compound interest, and budget for things like mobile plans, transport, or outings.
Teach kids to save, spend and give
One simple and powerful framework is the “save, spend, give” method. When your child receives money – whether it’s from pocket money, birthdays, or chores – encourage them to split it between savings, spending, and giving. This creates a balanced mindset and introduces the concept of intentional money choices.
Practical financial literacy activities for kids
You don’t need to share your income or mortgage details, but it’s helpful to talk about money in day-to-day life, rather than keeping it a taboo topic.
Looking for fun and effective ways to teach your kids about money? Try these real-life ideas:
• Let them help with the grocery budget – compare prices or calculate totals
• Explain shipping costs, discounts, and wants vs needs
• Give a small allowance tied to chores and help them plan how to use it (also – let them make small mistakes, and then talk about what they would do differently next time)
• Create a savings goal chart for something they want to buy
• Use games like Monopoly, apps like Spriggy or ZAAP, or even role-play a store at home
• Include them in family conversations about saving for holidays or birthdays
• Print off your bank statement and show them how direct debits, subscriptions and impulse purchases can quickly add up
Hands-on experiences and everyday conversations help kids see that money is a tool – not a stress, not a secret, and not something to fear.
Teaching kids about digital money
In an increasingly cashless world, it’s essential to teach kids about digital money. Explain how debit cards work, how online purchases are made, and what bank transfers or pay apps are.
Apps to teach kids about money can also be a great tool, offering kid-friendly experiences with parental oversight. Just be sure to talk about safety and limits too.
Make money conversations part of everyday life
Teaching kids about money can be woven into your day-to-day activities. Keep it positive, answer questions honestly, and look for teachable moments – at the shops, at the bank, or even while paying bills. Remember, kids learn most by watching you. If they see you budgeting, saving, and talking openly about financial goals, they’ll absorb those behaviours too.
Financial literacy for kids isn’t about giving them all the answers; it’s about giving them the tools. Start small, stay consistent, and keep conversations open.
The more normal it feels to talk about money, the more confident your kids will become in building money habits that will support them through life.
Looking for support with your family finances?
At FMS Group, we’re big believers in helping families build strong financial foundations, and that includes the next generation. Our team work with individuals and families across the Central Coast and Sydney’s North Shore to build practical, personalised financial strategies – no jargon, no judgement.
Call our friendly team on 1300 982 499 or contact us online to book your free initial consultation.