In this post we are going to cover my top tips for teaching kids about money. You might be surprised but many people’s money habits are learnt from their parents.

So let’s look at what you can do to help your kids.

The first step is the biggest and hardest. You need to sort yourself out.

This is going to be different for everyone.

You and your partner might already have a healthy relationship with money. This will be evident if live within your means, save for the future and invest your money. If this is you, then you have already done this step.

However, if you argue with your partner about money, don’t live within your means, struggle to pay your bills and/or have big debts, then this step will take time and effort. These items may highlight that you have money issues.

This is important as your kids will model your actions and learn from what you do more than what you say.

If they ask questions, answer them truthfully

Kids via their nature are inquisitive and wants to learn. At some stage they will ask questions and you need to calmly and truthfully answer them. These will become more challenging as your kids grow.

They could be where money comes from or why can John have this toy and I can’t. In these circumstances don’t just brush them with ‘We can’t afford it’. Talk to them. Explain that you work hard for your money and have to prioritise and make decisions about what you can and can’t get. Then maybe suggests they could do some odd jobs to earn money, save and then get the item they want. Then your kids will learn to work for their money and prioritise and make decisions about where their money goes.

If you invest, don’t hide this from your kids

One thing I am thankful of is my parents didn’t hide their investments from me. I just thought this is what people did. So when I started working I saved and started investing.

I didn’t know this wasn’t different until I started talking to my work colleagues and found that a lot of people live from pay cheque to pay cheque.

Don’t get me wrong, my parents were not rich, they were both primary school teachers. They were just good financial role models for me.

So if you do invest don’t hide this from your kids. You don’t need to go into detail and the nitty gritty, just don’t hide it. You will be surprise what they pick up. If you hide it, they will think it is something to be hidden.

If you are open, then like me they will think it is just something you do when earn money. Which I think should be the case, but that is a discussion for another time.

If you follow these top tips for teaching kids about money you will set a good foundation for your kids to have a health relationship with money.

Do you teach your kids lessons about money? Please share your tips below in the comments.

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  • Being a good money role model for your children is a great gift.


  • Thank you for sharing your thoughts, cheers.


  • every Tuesday is school banking, if they have any money that they have found or got, I try to encourage them to put it in the bank. sometimes I have a moment where my kids just want to have it because they might need it for something. I say not to spend it on lollies or some crap because it wont get them far. if they don\\\\\\\’t have a particular toy or something that want that may cost something, I make them put it in the bank and let it grow. but if they are aiming for something, I try to encourage them to put it in the bank as when we get to that price, we can go to the bank and take it out. this has not happened yet at all because sometimes the money goes to lollies or icecream and I do warn them about their dream item they wish to buy. when they have spent it, I say its their lost and see how quickly the money goes.


  • Really like the truth and honesty approach. We are trying to do the same and havbeen pleased with results so far. Great article, as quite a few people gave suggested kids don’t need the details.


  • My daughter has a money (age 3) ad knows to put spare change in t. We then bank it when it gets full.i


  • great tips thankyou for sharing


  • teachng kids bout money


  • Great article.Thanks


  • Awesome ideas. Many thanks


  • Hi CoastalKaryn, great point, espoecially the No Debt!


  • this is a great post – it is so very important to teach kids the value of money, and to save, and no debt!

    • 100% agree with no debt – it just does not make sense to have debt. If you cannot afford it – then you do not buy it!


  • I think money management should be taught in school it’s that important!

    • Hi JODIEV1980, I agree it would be great if money management was taught at schools.


  • Great article thanks for sharing


  • We’re always teaching our teenager about money. I’ve shown him our weekly budget on what we need to cover the bills, I’ve talked him through our mortgage and explained how we’ve worked out butts off and saved to own our home, only buy things you can afford, avoid credit, pay off your debts. It’s obviously a work in progress and there are always teaching moments.

    • Hi ROVERMUM, sounds like you are doing an awesome job, but you are right there are always little teaching moments. Keep up the good job :)


  • One of the things I talk to my kids about is the difference between a “need” and a “want”. Most times when they see a toy there first reaction was to say “mummy I need that toy”, now I just at them knowingly, and they rephrase “mummy I want that toy, how long would it take to save for it?”. My 9 year old is starting to understand – my 6 year old still needs it! (but we will get there!)

    • Hi MICKY, that is such a great lesson. I am always so frustrated when I hear an “I need ….”. It sounds like your kids are learning a lot of important lessons from you :)


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