How to… teach your kids about money

Help your children become financially savvy with these simple steps

Being able to manage money is an essential life skill, so it’s important you start sharing your know-how with your kids.

1 Start early

‘The majority of your children’s financial education will come from you,’ says Kathy Longo, author of Flourish Financially. ‘It’s critical that we teach children early and often how we want them to value money.’

2 Make it real

‘For primary school children, it’s important to teach them about money in a tangible way,’ says Kathy. With contactless payments on the rise, you may rarely use cash but it’s important children get used to handling coins and notes, so let them pay in shops with cash regularly and count the change. Give them pocket money and let them make their own mistakes. If they spend it all at once, then don’t bail them out if they can’t afford something else that week. And encourage them to save regularly for things they really want.

3 Joining together

Get your children involved in your budgeting. ‘By secondary school, children should have an idea of what it costs to keep the house running,’ adds Kathy, a certified financial planner. ‘Once they have a concept of a budget, get them involved in the family spending decisions.’