A character named Goob the Bear wants to buy a toy he loves but doesn’t have enough money. Goob decides to save his pocket money each week, resisting the temptation to spend it on smaller treats. Over time, his patience pays off, and he buys the toy, feeling proud of his accomplishment. Meanwhile, Goob’s friend spends all his money as soon as he gets it, missing out on the chance to save for something bigger.
This simple contrast essentially teaches children about good money habits and the consequences of spending without a plan. It highlights an important lesson: when children learn how to budget and save money with a goal in mind, they lay a strong foundation for lifelong financial responsibility and success.
If you’re considering starting your child’s financial literacy journey, here are some simple and effective ways to begin:
- Let them experience money hands-on
Children naturally learn best by doing. Learning the theory behind money is great but it’s not enough to teach financial skills. Children need real-life scenarios to grasp the true value of money.
For example, giving your child some pocket money and encouraging them to budget and save money for the things they want—rather than going into a shop and buying it for them straight off the bat—can help them make thoughtful choices about how they manage their money.
If you have a younger child, a simple game of having them compare prices and finding discounts when you’re out grocery shopping can be a hands-on experience that teaches them about conscious spending.
- Introduce the concept of saving
Help your child see that money isn’t just for spending—it’s also for saving. Start with simple, visual methods.
- Use a clear jar or piggy bank to show how savings grow over time.
- Set goals together—like saving for a toy or an outing—and discuss how each would cost and how long it might take for them to save money towards that goal.
- Celebrate when they achieve them.
This not only encourages delayed gratification but also highlights the importance of planning ahead.
- Teach the power of earning
Does your child think money just comes from a magical card that you can swipe to buy whatever they want—and that you’re being the villain for saying ‘NO’ when all you’re trying to do is set some financial boundaries?
It might be time to shift that mindset by showing them that money is actually ‘hard-earned’.
To help them make the connection between effort and earnings while fostering a sense of responsibility and independence, consider aged-appropriate chores or tasks that come with a small monetary reward.
Often a child will also experience a sense of pride for a ‘job well done’ if there is a tangible value attached to the task.
- Make it fun
Financial education doesn’t have to feel like another boring maths class.
Introducing games that can mimic real-life financial decisions are a great way to make ‘learning about money’ more fun, engaging and memorable. Family board games like ‘Monopoly’ or ‘The Game of Life’ are good ones for introducing concepts like budgeting, investing, and managing debt.
At the end of the day, long term investing in your child’s financial literacy is one of the most valuable investments you can make in their future.
Teaching your child about money and financial concepts from a young age means they are more likely to develop a healthy relationship with money as adults. This is backed by research that shows good money habits can start as early as 5!
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