Helping your kids get a handle on money
Teaching kids about money early on is one of the best gifts you can give them. Good money habits stick — and the earlier they learn how earning, spending and saving works, the more confident they’ll be when they eventually manage their own finances.
With tap-and-go payments, online shopping and less cash changing hands (especially since COVID), money can feel pretty “invisible” for kids. That makes it even more important to show them what it is, how we get it, and where it goes.
Two sides of the coin
A simple way to break it down is this:
how money comes in and how money goes out — or, put another way, how to earn it and how to spend it wisely.
Most young kids think money magically appears from Mum or Dad’s wallet. They don’t realise you’re at work earning it. That’s why pocket money is such a powerful teaching tool.
Learn to earn
Instead of giving a flat amount each week, you can tie pocket money to certain tasks — not everyday responsibilities like making the bed, but extra jobs such as feeding pets, watering plants, weeding the garden or washing the car.
Each task can have its own small “value”. The more they do, the more they earn. It teaches them that money is something you exchange your time and effort for.
It also reinforces that not everything in life has a dollar attached to it. Some jobs are simply part of being in the household “team”.
Saving and spending
Once kids start earning money, the next step is teaching them what to do with it. One of the easiest methods is using three jars or piggy banks:
Saving, Spending, and Giving.
Here’s how each one works:
Saving
Help your child choose a goal — something that costs a little more and takes a little time. Maybe a toy, a game, or something for their room. Saving teaches patience and reward, and that spending everything straight away means you miss out on bigger things later.
Spending
This is their fun money — the small treats, toys or snacks they can buy whenever they like. It helps them understand choice and independence.
Giving
This can go towards charity, school fundraisers, or gifts for family and friends. It teaches generosity and empathy, and helps them realise that money isn’t just for themselves.
If they blow all their spending money in one go, that’s a lesson too. It opens the door to talk about budgeting, making choices, and managing what’s left.
Money lessons in a digital age
Just like everything else, pocket money has gone digital. There are plenty of apps designed to help kids learn about earning and saving. While the “shake the piggy bank” days might be fading, understanding digital money is essential — your kids will grow up in a world where most transactions happen online.
Bring them into real-life money moments
One of the best things you can do is let your kids watch how you manage money. Show them your online bills, explain what they’re for, and let them click the “pay” button. Talk about why you choose not to buy something now because you’re saving for something else.
When you’re shopping, involve them in making decisions:
Is the cheaper brand just as good?
Do you need five avocados for $10 if you’ll only eat two?
These small conversations help build financial awareness.
Kids learn from what you do, not just what you say
Whether you’re using jars, apps or pocket money charts, the biggest influence on your kids’ money habits is you. How you save, spend and talk about money becomes their blueprint.
The goal isn’t to turn them into accountants — it’s to help them grow into confident, capable adults who can stand on their own financial feet.
