Teaching children financial literacy at home

Mother and daughter putting coins into piggy bank.

We spend years in school learning about photosynthesis, the periodic table, algebra, computer programming, and maybe the complexities of Shakespeare. As the education system is passionate about STEM, one of the most important life skills—managing money—often gets left out.

If you remember your school days, how often did a teacher sit down and say, “Let’s talk about budgeting, saving, and financial planning for your future”? Probably never. The lack of financial planning lessons in secondary schools is a glaring omission in the education system.

That’s why we can turn the home into the best financial classroom as parents, guardians, or even cool aunts and uncles. And guess what? You don’t need to be a finance whiz to teach kids how to handle money. A few simple, everyday lessons can lay the groundwork for financial literacy that will last a lifetime.

Why schools don’t teach money


In most education settings, STEM subjects are prioritised, and financial education takes a back seat. Many schools simply don’t have the time or resources to fit money management into an already packed curriculum. Even when financial education programs exist, they’re often dry, theory-heavy, and disconnected from real-life applications. It’s not about making intelligent choices with your money but more about definitions and calculations that are not overly inspiring to teenagers with other things on their minds.

It is worth remembering that kids are sponges and ready to start learning the basics of money, even in primary school. Starting early with lessons in financial literacy sets children up for a future where they can make informed, confident decisions about their finances. And when you start young, managing money becomes second nature. They don’t need to understand complex economics. They need to grasp simple concepts like saving, budgeting, and spending wisely. By the time they’re teenagers, they’ll be pros in understanding how to make their money grow.

The family home is the best training ground


Home is where kids first encounter money, whether seeing their parents pay for groceries, overhearing conversations about bills, or receiving birthday money from grandparents. This gives parents a golden opportunity to teach financial principles in a way that makes sense and resonates with children.

Even young kids can learn that money doesn’t magically appear. Set up small “jobs” around the house where they can earn pocket money—anything from helping wash the car to folding laundry. This introduces the concept of earning and shows that work leads to financial reward.

The piggy bank is a timeless tool for teaching kids about saving. Take it further by setting small savings goals, like saving up for a toy or game they want. Once they hit the goal, the satisfaction of using their saved money teaches them the value of patience and delayed gratification.

And, we’ve all been in the shops with a child demanding something.. Instead of giving in, use these moments to discuss needs versus wants. Help them understand that spending wisely isn’t about never buying things, but about choosing what’s truly worth their money.

Financial literacy isn’t just about personal gain; it’s also about understanding the importance of giving. Encourage kids to set aside a tiny percentage of their money for charity or to help a friend or family member in need. This helps foster generosity while teaching the concept of budgeting.

Is there a payoff to the effort?


Raising children is a thankless and often demanding experience. Teaching kids about money at home gives them the skills they need to avoid debt, manage their income, and save for the future. They’ll be better equipped to handle credit cards, loans, and even investments when the time comes.

Financial literacy gives them confidence. Knowing how to manage money gives them control over their financial lives, reduces financial stress, and helps them make informed choices—whether it’s about their first job, their first home, or their retirement plan. As the old saying goes, “little kids, little problems, big kids, big problems,” and too often, parents are still funding their adult children due to debt or a lack of financial literacy.

An easy way to teach children is to make grocery shopping a lesson in budgeting by giving your child a small budget and letting them pick out a few items that fit within it. Set a family savings goal, like a holiday or camping gear or an item of significance that they share in. Let kids see how contributions and sacrifices add up over time.

Use our budgeting tool


Our team has designed a free budgeting tool to help you make the most of your money and can be helpful when teaching teenagers how to budget and save. It will enable them to track spending, set savings goals, and monitor where their money goes.

Teaching children to be financially literate is one of the best gifts you can give them. While schools may not cover it in depth, your home can become the ideal learning place, and you might even pick up a few financial tips along the way.

We can help


family in white summer clothing walks hand in hand at the beach

Step Up Financial Group is a team of qualified financial specialists. We help hundreds of Australians, including many young families, create financial stability and resilience while building toward a confident retirement. Contact us today for experienced, compassionate, and professional financial planning advice.

Need more information? Get in touch with Step Up Financial


    • 107 Moulder Street,
      Orange, NSW 2800

      PO Box 2499
      Orange, NSW 2800

    • (02) 6362 5445

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