Teaching Kids About Money: A Guide to Talking Dollars with the Next Generation

Start young but keep it simple.

Talking about money and introducing financial concepts early doesn’t mean taking your 5 year old through this year’s tax return. It simply means making money a ‘normal’ part of your family’s conversations – whatever normal looks like for you.

For example, you could talk about saving up for something they want or involve them in small decisions at the supermarket. If it felt appropriate, you could show them your weekly shopping budget and receipt and explain what causes things to go up and down and involve them in the process.

Try to make space for these conversations without judgment or pressure. Share your own experiences, including any lessons you’ve learnt the hard way. Give them the tools and space to ask smart questions and just be curious and interested about money.

Top tip: When they’re young, remember to keep it simple – stuff like earning, spending, saving and giving. The earlier kids start building familiarity with money, the more confident they become.

Spending isn’t taboo – talk about it.

Teaching kids to think critically about spending money helps them build good judgment and helps them make more informed decisions. You could start with simple concepts like ‘needs vs. wants’  and talk about how you as a family spend money on must-haves (like rent, food and power) and nice-to-haves (holidays and interests). 

Find ways to expose them to all the ways they can spend, including online, cash and card. The mechanisms we use to spend our money have changed, so it’s important to address that. For example, explain the connection between tapping your phone or card and the fact that it draws the money out of your bank account. Every time you tap your phone, you have less money in your bank account. 

Top tip: It’s never too early to encourage smart goal setting and introduce the concept of delayed gratification, “If you want to buy this new toy, you might have to wait a few weeks and save up till you can afford it.”

Show them how to give — and why it matters.

Money isn’t just for spending or saving — it’s also a powerful tool that can be used for good.

Teaching kids about giving helps them build empathy and understand that even small acts of generosity can make a real difference. Whether it’s donating to a cause, buying a gift for someone in need, or pitching in for a fundraiser, intentional giving encourages kids to look beyond themselves.

The most powerful lessons come from what our kids see — so let them watch you in action. 

Talk about why you give, how you choose the causes your family supports, and how giving makes you feel. Role modelling generosity shows them that money has power — and that using it thoughtfully can help make the world a better place.

Top tip: Let your child choose where a small donation goes — it builds decision-making skills and shows them their voice (and dollar) matters.

From piggy banks to pay checks.

As your child gets older and you feel it’s appropriate, you can start expanding the conversation to include more complicated financial concepts. You could open a savings account together. You might talk about how compound interest works. You could introduce the concept of superannuation, tax and even investing with the goal here being to build awareness and encourage questions. 

As they get even older and are preparing to enter the big, wide world – these conversations can be broadened even further to include real-world financial concepts. Think things like HECS-HELP, mortgages, becoming a business owner, salary sacrificing and so much more.

There is no age limit to the benefits of  teaching kids about money. By introducing regular, age-appropriate conversations, we can help kids feel more capable, curious and in control when it comes to money. That’s not just a life skill. That’s a legacy we are proud to leave behind.