Raising your kids to be smart with money gives them a vital life skill

You don’t need to be an expert to teach kids about money. Just start a conversation about money when the opportunity comes up at home or when you’re out. Your kids will naturally ask you for the things they want. It’s hard when you have to say no. Talk about how we all have limited money and we need to carefully decide what we spend it on.

How you earn money

Talk about how you earn the money you have to spend. You get a certain amount of money each time you get paid. The money you earn has to cover the essentials, like food, clothes and housing.

Show your kids where money goes

Use everyday situations to teach your kids about money, including where it comes from and where it goes.

When you tap and pay

Explain that when you tap your card, it talks to your bank who has your money in your bank account. When you tap to pay it uses money that you’ve made by working and saving. Each time you tap and pay, you have less money in your account.

Give kids pocket money

Pocket money can help children to understand the value of money. You can choose to pay them for certain tasks, for example:

• mowing the lawn.

• vacuuming the house.

• washing the car.

• taking the rubbish out.

• cooking dinner or making school lunches.

• hanging out and bringing in the washing.

• packing and unpacking the dishwasher.

• walking the dog.

When your child wants to spend money on an impulse purchase, remind them about the goal they are saving for. Work out how much longer they’ll have to wait to reach their goal if they decide to spend today.