Last Updated on: 11th November 2025, 10:18 pm
Money talk can be awkward — especially with kids. It’s one of those life skills they really need, but most of us never got any proper guidance on how to teach it. I used to think “I’ll just explain saving when they’re older,” but then I realised kids start forming money habits much earlier than we think.
The good news? You don’t need fancy charts or expensive apps. A few simple, everyday lessons can teach kids the value of money in fun, practical ways.
1. Start Small (Literally)
Even from a young age, kids can grasp basic money concepts — especially if you make it visual.
Try giving them a clear jar or purse for their pocket money so they can see it grow (and shrink when they spend it). The physical act of counting coins helps them understand that money isn’t endless.
When they buy something with their own savings, the pride on their face is priceless — and they instantly appreciate the value of what they’ve earned.
2. Use Pocket Money with Purpose
Pocket money isn’t just a treat — it’s a teaching tool.
If you can afford it, a small regular amount (say £1–£3 per week, depending on age) works wonders for teaching budgeting. Let them decide how to use it, even if you secretly know they’ll blow it all on sweets. That’s part of the learning process!
As they get older, you can introduce the “save, spend, give” method:
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Save: For bigger goals, like a toy or day out.
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Spend: On small, everyday treats.
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Give: A tiny bit to charity or a cause they care about.
It teaches balance and awareness — three lessons even some adults still struggle with!
3. Turn Shopping Trips into Mini Lessons
Supermarkets are surprisingly good classrooms.
Before heading out, give your child a small shopping challenge, like comparing prices or finding the best deal. For example, “We need pasta — which one’s best value per 100g?” It turns maths practice into something real-world and useful.
Older kids can even plan part of a meal within a set budget — it’s empowering, and it might stop them from thinking money “just appears” on tap.
4. Let Them Earn (and Learn)
Instead of handing out pocket money automatically, consider tying it to small, age-appropriate chores. It helps them connect the dots between effort and reward.
It could be things like helping fold laundry, walking the dog, or washing the car. But I’d keep core responsibilities (like tidying their own toys) separate — those are just part of family life!
Having the chance to earn a little extra gives them a sense of independence — and teaches that money is something you work for, not something that magically shows up.
5. Play Games About Money
There are loads of fun (and free) ways to sneak money lessons into playtime:
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Monopoly or Game of Life for basic money management.
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“Shop” roleplay with pretend coins — great for younger kids.
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Free online games from banks like NatWest’s MoneySense or HSBC’s SmartMoney hub.
They’re interactive, age-appropriate, and designed to make money talk feel normal.
6. Be Honest — Within Reason
Kids pick up on more than we think. If money’s tight, it’s okay to say, “We can’t afford that right now, but we’re saving for it.” It teaches patience and priorities.
I’ve found being open (without oversharing adult stress) helps kids understand that budgeting isn’t about “going without” — it’s about making smart choices.
7. Celebrate Saving Wins
When your child reaches a savings goal, make a fuss! Whether it’s saving £5 for a toy or £50 for something bigger, mark the achievement with praise and encouragement.
You could even make a little savings chart together — colouring in sections as they get closer to their goal. Visual progress is hugely motivating (for grown-ups too!).
Final Thoughts
Teaching kids about money doesn’t have to be boring or complicated. It’s all about involving them in small, everyday decisions and helping them see that money has value — and limits.
By starting young and keeping it fun, you’ll give them confidence and independence around money that’ll serve them for life. And who knows — they might even grow up to be better savers than we are!
