5 Things Every Parent Should Be Teaching Their Kids About Money and Finances

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Managing money might feel like something we figure out after school. But what if we could give our kids a better head start? The good news is, you don’t need to be a financial expert to raise financially aware children. You just need to start talking about money early.

If you’re already exploring ways to teach your little ones real-world lessons, Rock n ’Roller Baby has plenty of simple articles, easy tips and helpful tools for raising confident and clever kids from a young age.

So here’s a practical guide with five simple things every parent can teach their child about money – no jargon, no pressure, just real-life ideas that work in real families.

1. Start the Pocket Money Talk Early

Giving children regular pocket money helps them practise making decisions, including the occasional bad one. It’s a learning curve, and they need room to stumble before the stakes are higher.

Experts TSB from MoneyHelper recommend starting around age 5 or 6. A weekly amount of even just £2 to £5 helps children understand budgeting and choice.

Set some gentle rules, like saving part of it or keeping track of what they’ve spent. You can use jars labelled “save,” “spend,” and “share,” or go digital with kid-friendly banking apps like RoosterMoney. Just be ready when they spend £5 on glittery goo within 90 seconds.

2. Teach the Difference Between Wants and Needs

Understanding the difference between things we need and things we want is a skill most adults are still working on, so it’s never too early to start with your kids.

Next time you’re in the supermarket, ask your child to point out one item that’s a “need” (like apples) and one that’s a “want” (hello, chocolate buttons). It’s a simple way to introduce the idea that not everything goes in the trolley. Fair warning though, they might pick anything with chocolate as a need.

This lesson isn’t about saying no all the time. It’s about helping them understand the why behind our spending choices. These everyday moments are some of the best opportunities for kids to learn.

3. Help Them Set a Goal and Save for It

Delayed gratification is hard, even for grown-ups. But teaching kids to wait and save for something they want is a powerful lesson that builds confidence and patience.

Pick something small and meaningful like a toy or game they’ve been eyeing and help them set a savings goal. Use a clear jar, piggy bank or savings chart so they can see progress visually. Celebrate when they reach their target. It’s a big win.

Want to go a bit deeper? The book Raising Financially Fit Kids by Joline Godfrey offers brilliant, age-by-age advice for helping your child grow into a financially capable young adult. It’s well worth a spot on your bookshelf.

4. Let Them Earn It (Yes, Even £1 at a Time)

We all know money doesn’t grow on trees, but kids won’t unless we show them. Teaching children that money is earned (not magically appearing from the purse fairy) is one of the best places to begin.

Start small. Offer a bit of pocket money for everyday tasks, like setting the table, taking out the trash, feeding the dog, or helping fold the laundry. Even £1 here and there gives them a sense of ownership and achievement. According to Barclays, this early connection between effort and reward lays a strong foundation for smart spending later in life.

One mum even shared how her kids started a “car wash business” for the neighbours with a bucket and sponge can be messy, but surprisingly effective. Try encouraging your kids to start a small business whether it’s a lemonade stand, car washing or lawn mowing business and watch them learn the nitty gritties of finance and business. 

5. Let Them Make and Learn From Mistakes

As tempting as it is to step in when your child regrets spending all their money on something silly, don’t rescue them just yet. Learning to live with those little regrets is part of building better money habits.

Instead, talk about it: “Was it worth it? What might you do differently next time?” Small financial mistakes in childhood can be valuable teaching tools — especially when they happen in a safe, low-stakes environment.

Letting kids feel the consequences (without shame) helps them build resilience and understand value better than any lecture.

Future Planning Starts with Small Steps

Helping your child understand money won’t happen overnight. But every little conversation  about saving, spending, and earning plants a seed. One that will grow into confidence, independence, and financial savvy over time.

And when the time comes for your child to fly the nest (or just head off to uni), make sure they check out this practical guide on how to manage your finances in college — it’s packed with real tips they’ll actually use.

Final Thoughts

Let’s be honest, many of us didn’t grow up learning about ISAs or budgeting. If you’re still figuring out your own financial plan (like most of us are), check out the resources from Finli for simple, helpful advice on everything from family savings to long-term planning

And you don’t need to be a money whizz to raise money-smart kids. Just start the conversation. Keep it simple. And let them learn as they go – glittery slime regrets and all.

The goal isn’t perfection. It’s confidence. And you’re already on the right track.