Getting started with money

Teaching kids about money at a young age can set them on a path towards a strong financial future. But where to begin?

Lesson 1: Understanding money

Key takeaway: Money represents value. People exchange it for goods, services or time.

Many kids see money as something that magically appears, and struggle to put it into context.

Aimed at primary school aged children, these lessons can help you to explain what money is, how saving works and how to spend wisely.

Nobody knows your kids better than you do, so feel free to adapt as you see fit!

Connect your work/job to earning money. Explain that you receive money for the time and skills you provide to your work.
Use physical money – let them touch and count coins and notes.
Set up a pretend store with toys or pantry items. Use real coins and notes to link money to purchases.
Create a simple budget for an activity, like a family movie night. Let them decide what snacks to buy and how much to allocate.

Key takeaway: Saving means setting money aside to reach a goal.

Once your child starts to understand money, you can begin to introduce the concept of saving.

Help them choose something specific they want, like a new toy. Working towards an exciting goal keeps us motivated.
Split money into two clear jars – spend and save. Whenever they receive money, have them divide it into the jars – some for now and the rest towards their saving goal.
Compare an essential item (lunch) with a non-essential (toy), and which one you should save towards.
A savings chart can help them see their progress toward their goal. They can colour it in as their savings grow.
When their savings jar is full, let them deposit the money into a real bank account. Explain how banks keep money safe and how it can grow over time with interest.

Key takeaway: Spending choices affect what’s left for future goals.

This lesson is about making thoughtful decisions with money.

Instead of just spending money on whatever’s new and exciting, ask “Do you want this, or do you need it?”
Show that the same item can cost more or less in different stores. This can teach them to be a savvy shopper.
Explain that sharing a part of their money with others can make a positive impact. Discuss charities or causes they might care about.
Show them that sometimes it's better to save for one high-quality item that will last, rather than buying several cheap items that won’t.
If they use their spending money on a cheap toy that breaks the next day, it can be a powerful lesson.
Remind them that if they spend all their money now, they won't have enough to reach their bigger savings goal.

Our simple savings chart is designed to teach kids that through saving; they can get the things they really want.