Simple Ways to Raise Money-Savvy Kids

Teaching kids about money goes beyond just saving and budgeting—it’s about fostering a healthy relationship with money.

Written by Karlisle Morocco

When I first began my career in the financial services industry, I used to joke that by the time I turned 18, I had learned how to square dance in school, but no one had taught me how to make a budget. It wasn’t until I chose a commerce degree at university that money was discussed in an educational setting.

As parents, we strive to give our children the best of everything. We teach them to be kind, patient, and grateful for what they have, but when do we start showing them the true value of these things? Teaching kids about money can feel overwhelming, but it’s one of the most valuable gifts you can give them. In a time when the cost of living continues to rise, financial literacy is more important than ever. By helping your children develop good money habits early, you’re setting them up for a future of financial success.

So, what can you do beyond just teaching them to save and budget? How can you help them understand money in a way that's practical, fun, and meaningful? In this post, we’ll look at some lesser-known strategies to help you raise money-savvy kids.

1. Start With Emotions Around Money

It’s not just about numbers—how your kids feel about money is just as important. If they’re stressed or anxious about money, they might make poor financial decisions later in life. So, the first step in raising money-savvy kids is helping them understand their emotions around money.

Have conversations about money and how it makes you feel. Are you ever stressed about spending or saving? What did you learn from those emotions? Encourage your kids to talk about their feelings too—whether they feel excited, anxious, or even guilty about spending money.

Tip: Use real-life examples. Share times when you’ve made financial decisions based on emotions and discuss what you could have done differently.

2. Use Games to Teach Financial Skills

Kids learn best when they’re having fun! There are plenty of games that can teach your children valuable financial lessons without them even realizing it. Games help kids grasp budgeting, saving, investing, and even entrepreneurship.

Games to Try:

• Monopoly: A fun way to teach your kids about managing money, buying property, and dealing with debt. It also helps them understand long-term strategy and risk-taking.

• The Game of Life: This game simulates real-life situations like choosing careers, buying homes, and managing expenses, making it a great way to introduce financial decision-making.

• Cashflow for Kids: Created by Robert Kiyosaki, the author of Rich Dad Poor Dad, this game teaches kids about passive income and financial independence.

By playing these games together, you can help your kids understand financial concepts in a relaxed, interactive setting.

Tip: Let your kids lead the game. This allows them to make decisions, see the outcomes, and discuss what went right or wrong afterward.

3. Encourage Them to Be Entrepreneurs

Entrepreneurship can teach kids valuable lessons about earning, saving, and managing money. Even if they’re not ready to start a big business, there are plenty of small ways for them to learn.

Australia has a thriving small business and startup culture, and there are lots of simple, fun ways your kids can experience entrepreneurship.

Easy Ideas for Young Entrepreneurs:

• Start a small business: Whether it’s baking and selling cookies, offering a dog-walking service, or creating crafts to sell, kids can learn the basics of making money and managing expenses.

• Offer services to others: Running a neighbourhood lemonade stand, mowing lawns, or tutoring younger kids are all great ways to introduce kids to the world of business.

Tip: Help your kids track their earnings and expenses. Show them how to manage their profits and even reinvest money into their business.

4. Teach About Long-Term Investing

Investing might sound complicated, but it’s an important lesson that can pay off big in the long run. Introducing your child to investing early on helps them understand how money grows over time and why it's essential to think long-term about their finances.

In Australia, there are plenty of investment options that are easy for young people to explore.

Ways to Get Kids Interested in Investing:

• Start with a simple managed fund or ETF: These types of investments are relatively low-cost and perfect for introducing children to the concept of long-term growth.

• Let them watch your own investments: If you already invest in stocks, property, or other assets, show your kids how it works and let them watch your investments grow over time.

• Use apps to simulate investing: Apps like CommSec Pocket and Raiz allow kids to simulate investing in a safe environment.

The goal is to teach them about the power of compound growth and the importance of patience when it comes to building wealth.

5. Encourage Giving Back

Financial literacy isn’t just about earning and spending. It’s also about giving. Teaching your kids the importance of generosity and social responsibility helps them develop a well-rounded attitude toward money.

Australia is home to many charities and causes that need support, and getting your kids involved in giving back is a great way to teach them the value of money beyond personal gain.

Ways to Teach Giving:

• Set aside money for charity: Encourage your kids to donate a portion of their allowance or earnings to causes they care about.

• Volunteer together: Volunteering helps kids understand the importance of time, effort, and community service.

• Fundraising: Help your kids organize a charity bake sale or a fundraising event for a cause they care about. It teaches them about goal setting, budgeting, and the joy of helping others.

By encouraging philanthropy, you teach your children that money is not just for buying things—it’s also a tool for making a positive impact on the world.

6. Set Money Milestones and Rewards

Kids are more likely to engage with money lessons when there’s something tangible to work towards. Setting money milestones and rewards helps motivate them and gives them a sense of accomplishment.

Ideas for Milestones and Rewards:

• Savings goals: When your child reaches a savings goal, celebrate with a small reward, like a treat, a fun outing, or a small investment in their name.

• Learning milestones: If your child learns a new money skill, like budgeting or investing, reward them with something meaningful to encourage their progress.

Rewards don’t always have to be financial—sometimes a simple recognition of their efforts can be the most rewarding.

7. Use Technology to Your Advantage

Kids today are digital natives, so why not use technology to teach them about money? There are plenty of apps and tools designed specifically to help kids and teens manage their finances.

Helpful Apps for Kids:

• PiggyBot: This app helps kids manage their allowance by dividing it into different “pots” for saving, spending, and sharing.

• Bankaroo: A virtual bank where kids can set goals, track savings, and manage money.

• MoneyCoach: A budgeting app that helps teens track their spending and set financial goals.

By using these tools, you can help your kids manage money in a digital world, making learning about finance more fun and accessible.

Raising money-savvy kids doesn’t have to be a complicated or stressful process. By using creative methods like games, entrepreneurship, emotional intelligence, and digital tools, you can teach your children the important lessons of money management in a way that’s both fun and educational.

Start early, make learning engaging, and be sure to model good financial habits yourself. The more your kids understand about money, the better prepared they’ll be to handle their financial future. By taking these steps today, you’re setting them up for a secure and successful tomorrow.

Click here to book a 15-minute Good Fit Chat

The information in this article is general information and does not take into account any person’s individual situation. You should always do your own research, or seek professional advice to assist you in making an informed decision about what suits your needs.