Teaching Kids About Money – Simple Ways to Build Healthy Habits

Talking to children about money can sometimes feel awkward, but the truth is they are learning from us every day. The way we spend, save, and talk about money shapes their attitudes well into adulthood. By teaching kids healthy money habits early, we give them confidence and skills that will last a lifetime.

Start with conversations
Children pick up more than we realise. Being open about everyday money decisions like why you compare prices at the supermarket or save up before buying something helps them understand that money is about making choices.

Pocket money with purpose
For younger children, pocket money can be a great learning tool. Encouraging them to divide it into “spend,” “save,” and “give” teaches the basics of budgeting and goal-setting in a way that is easy to understand.

Encourage saving for goals
Whether it is a new toy, a bike, or a bigger purchase for teenagers, setting a goal and saving towards it helps kids see the value of patience and planning. Matching their savings (dollar-for-dollar) can also give them extra motivation.

Teach through experience
As children get older, giving them more responsibility, like managing a mobile phone bill, buying their own clothes within a budget, or setting up a savings account helps them learn how to manage money in real life.

Lead by example
Kids watch closely. Showing them healthy habits, like paying off credit cards on time, contributing to superannuation, and talking calmly about money, has more impact than any lecture.

Why it matters
Building strong money habits early helps young people avoid common mistakes and sets them up to make confident decisions later in life. It also makes money less of a mystery and more of a tool to support the life they want.