Raising financially capable kids is one of the greatest gifts a parent can give. In a world of tap-and-go payments, Afterpay, and digital wallets, teaching children about money is more important than ever. It’s not just about saving pocket money; it’s about instilling values, responsibility, and financial confidence for life.
Why It Matters
Research by the Financial Basics Foundation shows that young Australians often leave school with limited financial literacy, leading to poor decisions in adulthood. The earlier kids learn how money works, the more confident they’ll be when navigating jobs, bills, and savings. Good money habits learned in childhood often carry into adulthood, shaping how people approach debt, saving, and investing. With household debt in Australia among the highest in the world, the need for financial education has never been greater.
Practical Ways to Teach Money Skills
- Pocket Money With Purpose – Tie pocket money to chores and responsibilities. This teaches that money is earned, not given, and also gives kids the satisfaction of achieving something for their efforts.
- The Spend, Save, Give Rule – Encourage kids to split money into three jars: one for spending on what they want now, one for saving for something bigger, and one for giving to charity or a cause they care about. It’s a simple system that builds financial discipline and empathy.
- Bank Accounts for Kids – Many Australian banks offer fee-free kids’ accounts with tools for tracking balances. Set savings goals together and celebrate milestones to encourage long-term thinking.
- Involve Them in Family Decisions – Show kids how you compare prices at the supermarket, budget for holidays, or save for big purchases. Discuss why you might choose to delay buying something until it’s affordable.
- Introduce the Concept of Compound Interest – Even a simple demonstration, like showing how $10 grows over time in a savings account, can have a big impact on their understanding of money.
Resources for Australian Families
- Moneysmart – Teaching kids about money
- ASIC’s MoneySmart financial calculators
- Financial Basics Foundation – School resources
- Raising Children Network – Money management skills
Here’s What You Can Do
Start small, but start early. Encourage kids to be curious about money, involve them in family financial conversations, and celebrate milestones when they save. By laying a strong foundation, families can empower the next generation to make smarter choices, avoid unnecessary debt, and pursue the life they want with financial security.