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Teaching kids about money

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Raising your kids to be smart with money gives them vital life skills.

Helping younger kids understand money

As a parent, you can shape your child's relationship with money from an early age. 

You don't need to be a money expert to teach kids about money. Simple conversations at home and everyday moments can help kids understand where money comes from, where it goes, and how to use it wisely.

Money conversations change as kids grow. What works for a young child will be different to what works for a teenager. But regular conversations can help build confidence and financial literacy over time.

How you earn money

Talk about how you earn the money you spend. 

Explain that you get paid for the work you do. Then show your child how you use that money to pay for things your family needs, such as food, clothes, transport and housing.

As kids get older, you can also talk about banks, savings accounts and digital payments.

What's the difference between needs and wants?

Talk about how you decide what to spend money on. 

Needs are things we need for everyday life, such as food, housing and clothing. Wants are things we would like to have but can live without.

When your child asks for something, talk about whether it is a need or a want. This helps kids think about spending choices before they buy.

Show your kids where money goes

There are plenty of everyday opportunities to teach your kids about money.

When you tap and pay

Kids often see people pay with cards, phones and smart watches.

Explain that tapping to pay still uses real money from a bank account. Each purchase leaves less money to spend or save.

While shopping

Shopping can help kids learn about price, value and choice.

You can:

When paying bills

Show your child a household bill, such as an electricity, internet or mobile phone bill. 

Talk about what the bill covers and how you use your income to pay for it. This helps kids connect earning money with paying for everyday things.

Looking for ways to practise at home? You can use Moneysmart's primary school lessons and activities with your kids at home. They cover topics like needs and wants, budgeting, saving and making spending decisions. Explore primary school lesson plans.

Help kids learn by doing

As kids get older, they learn more when they start making their own money decisions.

Giving kids some responsibility for money can help them build confidence and learn from small choices while the stakes are low.

Should kids get pocket money?

There is no right or wrong approach.

Some parents give pocket money each week. Others link it to certain jobs around the house, such as:

Do whatever works for your family and circumstances.

Having their own money can help kids practise spending, saving and making choices.

Encourage your kids to save

Learning to save is an important life skill.

Piggy banks work well for younger kids because they can watch their money grow. 

As kids get older, a savings account can help them learn about banking, saving and interest, including the power of compound interest.

There are also apps to help kids save money and develop good money habits.

How can kids save for a goal?

Help your child save for something they really want.

When they want to make an impulse buy, talk about the goal they're saving for and how today’s spending might affect it. 

You can use our savings goal calculator to help them see how different choices affect their progress.

Use the savings goal calculator

Plan an event together

Invite your child to help plan a birthday party, family outing or special activity. 

Work through the costs together and talk about what fits the budget. This helps kids practise planning, prioritising and making spending decisions.

Do a budget together

Talk through parts of the family budget with your kids. 

Show them how much money comes in and how you use it for things like food, bills, transport and savings. This can help them understand the cost of living and how planning ahead helps. 

If they are earning money, show them how to create their own budget using our budget planner.

Help your kids learn with the budget planner

Track their spending

When older kids start earning or receiving money regularly, they may feel tempted to spend it all at once.

Show them how to track their spending so they can see where their money goes. This can help them make more informed choices about spending and saving.

Share their money

Some families include giving as part of learning about money.

If your child wants to support a charity or cause they care about, talk about how donations can help others and how giving fits alongside spending and saving.

Help teens build money skills for adulthood

Money conversations don't stop when kids become teenagers.

As young people gain more independence, parents can still play an important role. You can help them build confidence, understand risks and prepare for bigger money decisions.

What should teenagers know before their first job?

Getting a first job is an exciting milestone.

It's also a good time to talk about:


For many teenagers, this is the first time they earn and manage their own money.

How can I help my teenager manage money?

Teenagers often start saving for bigger goals, such as a concert, a holiday, study costs, a car or moving out of home.

Help them set a savings goal, create a simple budget and track their spending. These money skills can help them make confident financial decisions later in life.

They can also use the budget planner or savings goals calculator to make a plan.

Saving for a car

Many teenagers save for a car as one of their first big money goals.

Talk about the full cost, not just the purchase price. This may include registration, insurance, fuel, servicing, repairs and loan repayments.

Comparing options and planning ahead can help them make a more informed decision.

How can I help my teenager avoid money mistakes?

Encourage your teenager to ask questions before signing up for new products or services. A quick conversation can help them understand the costs, risks and alternatives before they commit.

Teenagers and young adults often make more money decisions online.

Talk about things like:

These conversations help young people recognise risks and make informed decisions.

Keep the conversation going

As your teenager gets older, they’ll start making bigger money decisions. 

They might start asking questions about managing money while studying, buying a car, moving out of home, rental bonds and leases or saving for a home.

You don't need to have all the answers. But your guidance still matters.

Talking through options together can help them build confidence and make informed choices.

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