How to teach your children about money at different ages

Financial education is set to become part of the national curriculum for primary and secondary school pupils from 2028 but parents can already start teaching their loved one about money from now.

It isn’t just up to teachers to educate children about money matters and there are lots of lessons that can be taught at home, without a child even noticing.

Starting money lessons early can help boost a child’s financial literacy skills and there are steps you can take even from the day they are born.

From playing shops to giving pocket money, here are the key ages that experts suggest money lessons should be taught.

At birth: Open a Junior ISA

Saving and investing may not be the first thing you consider when you have a baby but it can be a good time to open a Junior ISA (JISA).

The accounts can be opened by parents and up to £9,000 can be saved or invested tax-free per year, with anybody paying in, for your child who can access the money from age 18.

Sarah Coles, head of personal finance for AJ Bell, said: “The sooner you open a Junior stocks and shares ISA for them, the more time it will have to grow. You can gradually introduce them to their JISA as they grow up.”

Age 3-5: Learn the basics

Experts suggest age three to five is a good age for children to learn the basics of exchange and the value of things. This could be just by playing shop.

Financial coach Claire Saunders, of Mint Coaching, suggests that in the early years children are simply learning what money is, so it is worth finding real-world exposure such as paying in shops, handling coins, noticing prices, and working out simple change.

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She said: “These small, practical moments build comfort and familiarity without pressure. It’s also where a child’s early money narratives begin to form. Phrases like ‘we can’t afford that’ or ‘money doesn’t grow on trees’ are absorbed quickly, so awareness of tone matters.

“The aim is for money to feel calm, normal, and part of everyday life rather than something stressful or avoided.”

Age 6-10: Introduce pocket money

Once your kids start school, it may be a chance to introduce pocket money either as a reward for chores or to teach them about spending choices.

Coles suggests this cuts “pester power” as instead of asking for sweets or small treats whenever you’re out such as on the way to or from school, you can tell them that if they want something they can spend their pocket money on it.

She said: “It doesn’t need to be much to start with, it’s just the idea of having their own money and getting to make some early decisions about prioritising spending. As they get older, you can give them a pay rise.”

Age 11-12: A child’s first bank account

Children’s bank accounts can be opened from age 11 and are a good way to teach kids about budgeting and managing their allowance, especially as many will be getting their first debit card.

Some accounts even pay interest, providing an opportunity to teach children about savings.

Coles said: “You can help them manage their money and encourage them to switch some into savings, to build good money habits as young as possible. At this age they’re likely to make some poor decisions, but they can’t go far wrong given the sums involved, and at least it’s a chance to learn.”

Some accounts let the parent ‘manage’ access or amounts via an app.

Age 13-15: Work for it

From around age 13 a child could start essentially earning their own money.

This could just be from doing chores around the house to odd-jobs such as dog walking or washing cars.

Some parents will pay their children for jobs they believe they should be doing anyway, like tidying their room.

Others will expect this as a bare minimum, and pay them for extra jobs like ironing or gardening – whichever way you choose, it’s about learning the value of work and effort to eventually exchange this for buying power.

Age 16-18: Prepare for adult life

From around age 16, your child will be looking towards higher education or even leaving school and getting a job. They may even be looking for ways to earn cash so they can go out with friends or pay for their own holidays.

Saunders said: “This is a good time to introduce a simple structure that mirrors adult life, where money is divided into different purposes: short-term spending, longer-term saving, something specific they are working towards, and a small buffer for unexpected costs.”

If you have done the work in their younger years, said Stacey Morris, financial adviser for BlackFin Independent Wealth, now is the time to trust your children.

She said: “It should be a matter of watching them put in place all the learning, but occasionally making a few bigger mistakes. They will splurge on items that you consider frivolous – but only through this process will they properly be thinking about money.”

And, perhaps, seeing and learning from the after-effects of those occasional impulse purchases.

Age 18: Time to cut the purse strings?

Your young one is now an adult and can spend, save or splurge that JISA you opened when they were a baby.

They can make their own financial decisions – but that doesn’t mean support should stop and Saunders said there should always be opportunities to talk openly about money.

Saunders said: “There is no fixed point at which financial support from parents should automatically stop. For many families, the ‘Bank of Mum and Dad’ now extends well beyond 18, into university, early careers, and even housing support.”

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