How to Teach Kids About Money
A practical guide to teaching kids money skills: coin recognition, making change, saving, and the difference between wants and needs.
Money is the single most useful maths topic a child will learn and usually the one schools spend the least time on. If a twelve-year-old can do algebra but can't work out the cheapest of two offers in a supermarket aisle, something has gone wrong.
Teach it in layers. Layer one (ages 4 to 6): coin recognition and value. Layer two (ages 6 to 8): adding small amounts, making change. Layer three (ages 8 to 10): saving, wants vs needs, simple budgeting. Layer four (ages 10+): percentages, discounts, comparison shopping, and — if you can stomach it — the basics of interest.
Use real coins and real pocket money where possible. Children who only ever see pictures of money grow up thinking it's abstract; children who have handled coins grow up knowing that £2.50 is a real thing you can spend. This is one of the rare topics where the parent can out-teach the school.
Practise With These Free Games
Printable Worksheets to Go With This Guide
Frequently Asked Questions
When should children start getting pocket money?+
Age 5 to 7 is a common starting point, with small regular amounts tied to chores or simply to age. The goal is practice, not wealth — even 50p a week is enough for real decision-making.
How do I teach the difference between wants and needs?+
Use a physical sorting game: cut out pictures of 10 items (food, toys, shoes, games, shelter) and sort them together. Then talk about the grey areas — a jacket is a need, a £120 jacket is a want.
At what age should kids learn about saving?+
From age 5 or 6, using a transparent jar so they can see the money growing. Abstract bank accounts don't work for under-8s because they can't see the money.
Should I link money to chores?+
Opinions vary. The financial-literacy research slightly favours mixed models: a baseline allowance that teaches budgeting, plus bonus earnings for extra work that teaches the link between effort and income.