Valuable tips for instilling money-savvy skills in children.
As the new school year begins, it’s an ideal time for parents to provide their children with a financial refresh. In a rapidly evolving financial landscape, equipping the next generation with essential money-savvy skills has never been more important.
Children are growing up in a world dominated by digital currencies, cashless transactions, and financial technologies that demand a solid understanding of financial literacy from an early age. Parents, educators, and communities are increasingly seeking innovative and engaging ways to teach children about money and instil healthy financial habits for life.
Two financial experts share their advice on how to instil money-savvy skills in your children.
start early
Niresh Gopichand, director of risk at Atlas Finance, emphasises the importance of early financial education in improving literacy rates. Through his experience working with clients, he’s observed how vital it is to understand how money works.
He highlights that the beginning of a new year offers an excellent opportunity for parents to introduce fun and practical financial lessons to equip children to become money-savvy.
“Money doesn’t have to be a mystery; it can become an exciting and empowering part of your child’s life,” Gopichand says.
Also read our article on learning the value of money and 5 good money habits.
5 creative money-savvy tips
Gopichand shares five creative ways parents can integrate money lessons into everyday planning and spending activities.
-
Make a wishlist
Start the year by helping your children create a wishlist of items they’d like to buy, such as school supplies, books or toys. Work together to categorise these items into short-term and long-term goals. This exercise teaches the importance of prioritising needs over wants and the value of goal setting.
-
Budget like a boss
Assign your child a small amount of money to manage for school-related purchases or recreational activities. Let them decide how to allocate it, track expenses and balance their funds. This hands-on experience encourages budgeting skills and helps them appreciate the value of planning.
-
Needs versus wants challenge
During shopping trips, turn decision-making into a game by discussing whether each item is a “need” or a “want.” Encourage creative alternatives, like reusing or repurposing items instead of buying new ones. This challenge builds critical thinking and fosters smart spending habits.
-
Hunt for bargains
Make bargain-hunting a family adventure. Teach your children to compare prices, look for discounts and find the best deals online or in-store. This activity not only makes them money-savvy, but also reinforces their maths skills.
-
Save before you spend
Set up a savings jar or a digital savings tracker for your children. Encourage them to save a portion of their pocket money or gifts towards a meaningful purchase. Once they reach their goal, discuss investing options, such as a savings account or, for older children, buying a small share. This fosters delayed gratification and introduces basic investing concepts.
preparing for more advanced financial concepts
“By teaching children that financial success starts with small steps, it stands them in good stead for how they approach money as adults. By starting the process early, we equip them with the money-savvy skills to manage money confidently. As they mature, they’ll be better prepared to handle more advanced financial concepts,” concludes Gopichand.
simple, age-appropriate activities
“Now is the perfect time to start teaching children the value of saving,” says Mariné van Brakel, deputy CEO at RCS. “By building financial literacy, we can empower kids to develop money-savvy habits that will serve them well into adulthood.”
Van Brakel recommends using the “D.O.T. approach”, or “do one thing”, to teach children fundamental lessons about saving and financial management.
She shares the following age-appropriate activities that not only build money-savvy habits, but also make saving fun and practical for the whole family.
3–5 years: save coins in a money box
Money boxes make saving a fun and tangible experience for preschoolers. Let them drop the coins into the box, celebrating each addition by shaking it so they can hear the jingle of their progress. This simple, hands-on activity not only introduces the concept of saving, but also helps young children build patience and a sense of achievement.
6–8 years: create a visual savings goal chart
Young children benefit from seeing their savings journey come to life. Create a colourful savings chart with your child, breaking their goal into manageable steps. Add pictures of what they’re saving for, such as a toy or book, and celebrate each milestone they reach. This visual approach reinforces that small efforts can lead to big rewards.
9–11 years: open a savings account
Tweens are ready for their first bank account, which can help them develop independence and responsibility. Walk them through the process of opening an account and explain how interest works to grow their savings over time. Encourage them to deposit money earned from chores, gifts or allowances to see the value of consistent saving.
12–14 years: start simple budgeting
Pre-teens and teens can begin learning how to manage their money by creating a basic budget. Work together to list their income, such as allowances or birthday money, and their expenses like hobbies or snacks. Use a colourful chart or an app to make budgeting an interactive and rewarding experience.