Finance News

How can you give your kids money smarts?

As a parent, you provide the most important example to your children when it comes to money, so it’s vital to set them up for success.

The example that you set strongly influences your children, especially when it comes to your behaviour and attitude to money. Being a positive role model will teach your children valuable habits and lessons as they get older.  

Teaching money smarts

As children grow up and face the world, it’s important for children to learn about proper money management. In an ever growing digital world – kids are being conditioned to be consumers from a young age.

The nature of online shopping makes it harder for children to miss out on learning the real value of money. As there is no exchange of physical cash in online shopping, it can be difficult for kids to understand what they can’t see.

However, the good news is that the desire to go shopping can provide valuable lessons in making positive financial choices, such as budgeting, saving and working to earn their money. At different ages, these lessons will change.

The following are some tips for building money smarts no matter what age your kids are.

Young children

For young children, it is important to make money a tangible thing. An example of this is your child seeing money collect in a jar. By playing games that show your child how many coins are needed to buy particular items, you can demonstrate how money actually works and how spending reduces the amount of money in the jar.

Primary school kids

At this age, it may be beneficial to introduce more practical examples by linking household jobs they do with money as a reward. Additionally, it may be a good time to set up a savings account for you kid1 and for them to learn basic goal setting and budgeting.


As your child grows  up, a weekend or holiday job can help them realise that working leads to earning money. Furthermore, this stage should involve setting goals, such as buying a new mobile phone, while also meeting short term expenses like buying snacks, clothes and social activities.  

Young adults

When your child becomes a wage earner and they are still living at home, then it’s time to discuss living expenses, such as board and contributing to food and utility costs. You could instil the idea that building wealth for the future is important by cultivating an understanding that superannuation is important.  

Talking digital

More digital spending means that money lessons need to be adapted. Involving your children in the digital purchasing process can assist them in becoming competent faster. For instance, walk them through how it works and convey the actual price so you can take this out of their pocket money. Taking them to the ATM and explaining that money coming from the machine is reducing the amount the family has in savings.

It’s never too late (or too early)

To help build wealth investing from an early age can help. Speaking with your children about the importance of planning for financial success. Integrating money can be a positive experience for you children and you can set them up for success in the future.

1 A parent/guardian can open an account in a child’s name who is under 13 years of age, as long as they are a signatory. If the child is over 13 years of age, the parent/guardian must still open the account, but the child can be a signatory as long as the standard account opening requirements are met. Visa Debit, PayTag & AMPwave technology is only available to customers over 18.

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ASCK Pty Ltd (ACN 105 450 566), trading as AMEGA Financial Solutions is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited Australian Financial Services Licensee and Australian Credit Licensee 232 706. General advice warning: This website contains general information only. It does not take into account your objectives, financial situation or needs. Please consider the appropriateness of the information in light of your personal circumstances.

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