Talking to young children about money may seem a waste of time, but many of the lessons we learn as children stay with us as adults and can have a lasting impact on our lives. The more we talk about money with our children, the more chance they have to learn how to manage money properly when they’re older. Help shape your children’s future and get them thinking about the value of money, by teaching them financial literacy from an early age.

Why talk to children about money?

Here are three reasons why it’s worthwhile talking to children about money when they’re young:

1. It normalizes conversations about money: Create an environment for open discussion and learning through questions about finances.
2. It can help them make better financial decisions: Teaching children the basics of money management – saving, investing, budgeting – helps develop the financial skills necessary for later in life.
3. They can learn about past money mistakes and know which ones to avoid: Turn your own mistakes – credit card debt, overspending – into lessons and help children make better choices.

How to talk to children about money?

Money conversations with children can help foster a healthy relationship with finances as they grow older. But not every lesson needs to be a discussion; here are some easy ways to incorporate financial literacy into everyday situations: 

• Real life situations: Whenever you’re paying the bills or planning your monthly budget, get children involved in seeing how money is allocated and spent.
• Use technology: Take advantage of online learning or games that teach financial literacy.
• Get them involved: Let children participate in smaller family financial decisions, such as planning a meal and buying the groceries needed. Show them how to compare costs and find the best prices.
• Open a children’s bank account: Get children into the habit of saving early on by teaching them to set savings goals and then stick to their goals by regularly putting money aside into their savings account.

A healthy relationship with money

It’s never too early to start talking to children about money. Having money conversations early on not only encourages children to feel comfortable about discussing finances, but it can also play a pivotal role in becoming financially responsible adults.

By creating a safe and open environment in which to discuss money and ask questions, you can help prepare children for the future. One way to secure your own financial future is to get financial advice from an expert. Contact a Mortgage Express broker today for financial advice or assistance with a new mortgage, or for refinancing or refixing existing mortgages.

While all care has been taken in the preparation of this publication, no warranty is given as to the accuracy of the information and no responsibility is taken by Finservice Pty Ltd (Mortgage Express) for any errors or omissions. This publication does not constitute personalised financial advice. It may not be relevant to individual circumstances. Nothing in this publication is, or should be taken as, an offer, invitation, or recommendation to buy, sell, or retain any investment in or make any deposit with any person. You should seek professional advice before taking any action in relation to the matters dealt within this publication. A Disclosure Statement is available on request and free of charge.

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