With the Switch 2 on the horizon (and the tantalising idea of Sonic, Mario, and Minecraft all in one game!), my youngest kids are practically bouncing off the walls with excitement.
But like many families, we’ve had to tighten our purse strings recently. Instead of rushing to pre-order, we’ve turned this into a teachable moment—a chance to show them the value of saving and managing money properly.
It reminds me of when I was their age. I had a building society account, and the satisfaction of seeing stamps in the book and tallying up my savings was better than getting those little stars for a perfect score on your spelling test!
I’ll never forget the first time I saw three figures (and later, four!) in my account. That feeling of pride and accomplishment hooked me for life, and I want my kids to experience the same excitement.
Unfortunately, financial literacy for kids isn’t really something that’s taught within the UK schooling system. In America, they’ve got Home Economics; here in the UK, it’s more of a sink-or-swim situation.
That’s why I was excited to come across some fantastic tips from Mindy Paul, also known as the “$100 Million Dollar Coach.” Mindy’s advice makes teaching kids about money simple, practical.
Here’s a closer look at five key lessons he recommends for parents.
Table of Contents
5 Fun and Easy Ways to Teach Kids About Money
Teach Earning
Understanding the relationship between effort and income is the foundation of financial literacy. Mindy explains:
“If there’s a treat your child wants, like the Switch 2, trade them the money to buy it with small, age-appropriate jobs or tasks. This teaches them that money doesn’t grow on trees—it comes from effort.”
We’ve started doing this with our kids. They’ve taken on tasks like tidying their rooms and helping in the garden to earn pocket money. Not only are they learning the value of hard work, but they’re also developing patience by saving for their goal. It’s a win-win for teaching kids about money and building their confidence.
Encourage Collaborative Thinking
“Kids are full of ideas,” Mindy says. “If your child wants to start a bake sale or sell crafts, encourage them to involve their friends or siblings. This shows them how teamwork can multiply efforts.”
When my eldest suggested selling cookies to contribute to the Switch 2 fund, it turned into a family project. One child baked, another decorated, and we all worked together on ‘marketing’ to family and friends. Not only did it teach the kids the value of collaboration, but it also reinforced skills like communication and planning. This approach ties into budgeting for kids, showing them how pooling resources can help them reach financial goals faster.
Lead by Example
“If you’re sheepish about money, your kids will pick up on it,” Mindy advises. “Be open about how you manage your finances. Show them how you budget for essentials, save for the future, and treat yourself occasionally.”
I’ve started having age-appropriate conversations with my kids about household bills and savings. They’ve even seen me make sacrifices, like cutting out takeaways, to show how small changes can free up money for bigger goals. It’s all about normalising discussions on money management for kids and teaching them that financial planning is a necessary life skill.
Simplify Savings and Investments
“Many of us struggle to grasp investments as adults. Imagine how much further ahead we’d be if we learned about them earlier,” Mindy says. He suggests starting with simple tools like the “Spend, Save, and Share” jars.
For my kids, pocket money now gets divided into these jars:
- Spend: For small treats.
- Save: For bigger goals like the Switch 2.
- Share: For charity or giving back.
This hands-on approach makes saving tangible and fun while introducing concepts like delayed gratification and budgeting. Teaching children about money in such a visual way is also a great starting point for explaining more complex ideas, like investing, when they’re older.
Introduce the Idea of Charity
“Money isn’t just about earning and saving; it’s also about giving,” Mindy explains. “Encouraging kids to donate fosters empathy and social responsibility.”
We’ve made it a habit to set aside a small amount for local charities. Whether it’s dropping coins in a collection box or donating toys, it teaches our kids that money can make a positive difference in the world. It’s a valuable addition to any lessons on financial literacy for kids, showing them how their actions can benefit their community.
Share Your Money-Saving Journey!
Teaching kids about money is one of the best gifts you can give them. Whether it’s earning pocket money, learning to budget with jars, or collaborating on a bake sale, these small lessons create lifelong habits.
If you’re ready to dive deeper, check out resources like NatWest MoneySense for free tools and guides to help teach financial literacy.
And let me know in the comments—what money lessons do you remember from your childhood? How are you teaching your kids? Let’s share ideas and inspire each other!
FAQ Section
Why is financial literacy important for kids?
Financial literacy helps kids develop a healthy relationship with money, teaching them how to earn, save, and spend wisely. These skills reduce the risk of debt and poor money management in adulthood.
At what age should I start teaching my child about money?
It’s never too early! Even toddlers can learn basics like saving coins in a piggy bank. For older kids, introduce concepts like budgeting and delayed gratification.
How can I make saving fun for my child?
Try using jars, charts, or apps to gamify the process. Set small, achievable goals with rewards.
Are there tools or apps to help teach financial literacy?
Yes! Apps like GoHenry and RoosterMoney offer kid-friendly ways to learn about earning, saving, and budgeting.
What’s the best way to teach kids about budgeting?
Using the “Spend, Save, and Share” jars is a great start. For older kids, involve them in small household budgeting tasks, like planning a meal within a set budget.
Additional Resources
NatWest MoneySense
Free educational tools and guides for kids.
GoHenry and RoosterMoney
GoHenry and RoosterMoney Apps help kids track their earnings and spending interactively.
Money & Coins Resources
Twinkl has a wonderful array of money games and printables on their website.
Savings Jar Label Templates
Download these custom Spend, Save, Share, labels (in A4) for your own project (click the image to download the high-res version)!
