Kerryn Boogaard Kerryn Boogaard
Beverly Goldsmith Beverly Goldsmith
Zoe Bingley-Pullin Zoe Bingley-Pullin

Teaching children about financial management:

Teaching your child about the value of money is one of the best lessons you can give them in life.
By Motherpedia
Date: August 21 2012
Editor Rating:

It’s never too late to start encouraging children to be interested in earning money and the value of saving. 

Teaching children early in life about money management will give them an enormous advantage in their adult life. 

Children can gain financial independence in adulthood from the solid foundation created when they are young. 

  • Children between the ages of 5 to 9 have limited knowledge about the value of money.  Playing a game like ‘shopkeeper and customer’ is a good way to help children learn about money.  A parent can play the shopkeeper and the child can be the customer or vice versa.  Encourage children in this age bracket to help with shopping lists and talk to them about the cost of items at the supermarket.  When shopping, let them hand over some money to pay for the items purchased. Children may be given an allowance at this age.  When paying children an allowance, it is helpful to pay them with a mixture of notes and coins.  This will enable them to easily divide their money between spending and saving.  This is a good time to open a savings account to start the process of learning to save. 
  • Children between the ages of 10 to 15 start to have a good understanding of money.  Typically this age group love to spend!  Many children in this age group have opportunities to earn extra money from jobs such as babysitting and cleaning.  It is a challenge to encourage children at this age to save; therefore, a gentle approach is needed.  Encouraging them to put as little as 10% of their earnings into a savings account will help develop their understanding of financial management.  Teach them not to rush into impulse buying but instead shop around for value and quality.  They start to have a curiosity about what their parents earn.  Discussing your income and expenses shows children that money cannot be spent without proper planning and a household budget.
  • Children over the age of 16 have a real desire to earn additional money.  Encourage your child to look for a part time job, such as working in a fast food restaurant or supermarket.  This is the time they will learn about taxes.  Explain to them that tax is being taken out of their pay check to help pay for government services.  Guide them to divide a portion of their income to use as spending money and a portion to be set aside into their savings account.  It is a good idea for teenagers to have a long term savings plan.  This enables them to see that they are working towards a goal.  This goal could include saving towards a car or their education.

Pocket money is a great way to teach your child the importance of working to earn money.  Basic chores can be done by children as young as 5, then chores increase in number as the child gets older.  Once a child reaches the age of 16 they should be able to assist with any chores that are required to run a household.

Chores for children aged 5 to 8:

  • Set and clear away dinner table.
  • Empty the dishwasher.
  • Help to feed a household pet.
  • Dust their room.
  • Make their bed.

Chores for children aged 9 to 15:

  • Hang out laundry.
  • Help prepare family meals.
  • Vacuum several rooms in the house.
  • Put away groceries.
  • Help to wash the family car.   

How much pocket money should a child get paid?  A basic rule of thumb is $1 for each year of the child’s life.  This may not always be possible depending on the family’s financial situation or the number of children in the family.  It’s important to set the amount at what is affordable, thus still enabling the child to learn the principles of working to earn money.  Each year on their birthday they get extra chores along with a pay rise.

Communication is the key to a child learning about financial management.  It is important to talk to your child, whatever age they are, about all aspects of a household budget.  Children learn by example, so let them be part of the process by openly discussing the household finances.  When children participate in the running of a household, they gain self respect and grow in confidence.  By having responsibilities, they feel they are an important part of the family. 

Financial knowledge is a valuable tool for children to learn.  It will help them to build a better future for themselves and create a strong sense of achievement. 

Do you agree that financial responsibility is one of the most important lessons for children? What is your experience with teaching children about financial management?

100% of Mums Agree0% of Mums Disagree
Share This Tweet This Email To Friend
Recent Comments
12 Total Comments
Kiera Case says: 2017 07 18

Thank you mate for sharing about teaching children about financial management. I read about it at assignment writing too. Teaching our kids value of money is indeed essential, great post about that.

Gale Snider says: 2017 08 04

I just now identified applying indicate the item all over again. Advocate whatsoever I need to to make sure anticipation as a result of honest you will keep on being for the purpose of featuring that excellent organize. how to get a flat stomach diet

Gale Snider says: 2017 08 08

Beneficial blog site and also the fantastic excellent material in addition to I’m guaranteed this will be enormously very helpful. Jual Printer

Kris Harvey says: 2017 08 25

wow what a great post is this… thanks for sharing boss, keep share these valuable content. um die Führungs

Lenne Ander says: 2017 09 18

Together with thank you for anyone supporting website you might have actually recently been creating. I needed shied away from creating comments since media received about currently. i want to stop ringing in my head

Steff Alston says: 2017 09 18

Your colleagues are generally raging on the subject of a items also now I just discover why.  what is the quantum vision system trick

Phoenix Drive says: 2018 09 10

It seems almost everyone who is Internet savvy has their own blog. It might be about their own lives, their experiences or for a product, service, information or opinion. Want-to-be authors write novels and short stories. Here are some simple tips you can use to help you write good blog posts that people will flock to read. affordable plumbing tulsa

Oshtemo says: 2018 09 27

Notwithstanding whether you’re new to blogging or a spotted hand each one of us sees how essential stunning customary thoughts are, at any rate, we can all conflict to make true blue and entrancing substance reliably. I would even cross as some partition as to propose it’s miles a standout amongst the most extraordinary testing segments of online advancing. It doesn’t acknowledge broad to begin feeling as if you have a briefly uncooperative personality, slowing down out for insights and weak in splendor.

Spencer Jackson says: 2018 10 03

I got exceptionally eager to see these stylish looks. I think each one of the individuals who are looking of most recent patterns will truly appreciate perusing your post. If it’s not too much trouble give more data and photographs. I am energetically sitting tight for your refreshed post to get it. formal shoes online

View All Comments
Post a Comment
* your email address will not appear

Please enter the word you see in the image below:

Post a Comment
* your email address will not appear

Please enter the word you see in the image below:33343

Your Comment has been posted
Related Articles
It’s that time of year most ladies love, as there…
Read more
What child wouldn't want a pet? A pet can make…
Read more
As 1.1 million Australians have difficulty communicating or being understood.
Read more
Are you a spring-cleaning enthusiast - or a serial avoider?
Read more
Cry babies

Dry your eyes!
The newest additions are on their way from the Babies who cry real tears!


Latest Tech Used In Shipping Containers
Read how the shipping industry has revolutionised

Motherpedia cover-2

Win 1 set of a 4-book hardcover illustrated boxed set
Barbara Murray’s new 4-book Sound Stories is perfect for parents and educators and could assist with NAPLAN results

Motherpedia cover (4)

Where to celebrate Oktoberfest Australia
Get ready for this celebration!

Motherpedia cover-4

A Fortnight of Foodie Experiences at East Village
A taste of East Village. What's in it for me?

Globber my too fix up cover

We Try: Globber My TOO Fix Up
A scooter that grows with your child

Throw a winning cricket pitch

3 Steps to a Winning Backyard Cricket Pitch
Ex-Adelaide Oval legend curator Les Burdett shares his tips for getting your backyard cricket pitch test match ready this summer

A bike that follows your kids life cycle - motherpedia - cover

A Bike That Follows Your Kids Life Cycle
Check out the Bunzi 2-in-1 gradual balance bike!

Moonlight lifestyle

Moonlight Cinema to bring…
Moonlight Cinema announces brand new Western Sydney venue

Screen shot 2019-11-26 at 8.29.12 am

Your Magical Christmas Wonderland…
Adventure park is about to light up the night sky with its "Christmas Festival of Lights"

Screen shot 2019-11-21 at 11.11.36 am

The Preston Market Gets…
It's time to feel pumped up for the holiday season!


Bunnings team members get…
Help raise funds by buying a snag or donating at your local store.