Raising money smart kids.

By teaching good habits at home, you can help children become money-smart. Research has shown that by the age of seven most children have grasped how to recognise the value of money and count it out.  

Here are some basic do’s and don’ts. 


Delay gratification

Teach them to save up for what they want from an early age.

Teach them how to use money

If you’re willing and able to give pocket money teach them to manage it by splitting it in three: saving, spending, sharing, and let them decide how they want to split the money, guiding them in their decisions by setting goals for the saving (e.g. for a new bike) and sharing (e.g. for their favourite charity, or birthday presents for the family). 

Include them in money talks

Involve them in setting the household budget, preparing grocery lists and asking for help to shop within budget. Take a calculator to do the groceries so they can track how the budget is going. Their reward, if there is any saving, is to use the money on what they want.


Give in to demands

Tantrums can be tough to deal with but find ways to explain that they can’t always get what they want. If you give pocket money for chores, don’t hand it over if the chores haven’t been done. 

Give them money without a goal

Don’t just give money without having a conversation about how they’re going to spend it or save it for the things they want.

Keep them in the dark

Don’t keep them in the dark about your finances and the mysteries of how money works. The less they know, the harder it will likely be for them to form good habits when they’re dealing with money when they’re older. 

If you need help with your finances, it’s important for children to see you seek it, e.g. from a budget advisor. If they see you being proactive in seeking help, or using tools available, it will encourage them to seek support and tools when managing their own money.