How to Teach Money Skills to Kids
Teaching money skills is easiest with real money and real decisions. Start with pocket money, build to saving, and cover budgeting by age 10.
Money skills don't come from worksheets. They come from handling real money, making real decisions, and living with real consequences. A child who has never had their own pound to spend at a shop can't meaningfully learn about budgeting, no matter how many worksheets you print.
The curriculum, roughly: age 4 to 6 is coin recognition (what's a 20p? what's a £2?). Age 6 to 8 is pocket money and basic saving (earn some, spend some, save some). Age 8 to 10 is budgeting (planning how to use a larger amount). Age 10+ introduces concepts like interest, opportunity cost and delayed gratification. Each stage builds on the last.
Pocket money is the key teaching tool. Not as a reward — as a learning tool. A child with £2 a week learns what things cost, learns that money runs out, and learns that saving for something bigger takes discipline. You can't teach any of that from a textbook.
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Frequently Asked Questions
When should I start pocket money?+
Age 5 or 6 is typical. A small amount (a pound or two a week) is enough to teach basic concepts without creating spending that parents need to manage.
Should pocket money be tied to chores?+
Mixed opinions. The case for: it teaches that money comes from work. The case against: chores should be part of family responsibility, not paid work. Both approaches can work.
What's the 'save, spend, give' system?+
A common approach where pocket money is split three ways: some saved for a long-term goal, some spent immediately, some given to charity or a family cause. Teaches balance without being complicated.
When should kids have a bank account?+
Most children can have a child account from age 7 or 8. Opening one is a good moment to discuss saving, interest, and what a bank actually does.