How to talk to your children about money and help them become a savvy saver

Posted 07.10.2021

We all want our children to be raised as kind, well-mannered, confident individuals, with positive and healthy habits around nutrition and social media, but when it comes to educating children about the value of money, these conversations are quite often neglected.

It’s common and understandable to shy away from conversations about money with children, but as parents, we are financial role models. Our attitude towards money and the language we use is vital. It shouldn’t be any different to talking about keeping healthy or keeping them safe when using the internet.  It should be introduced in a phased and age-appropriate way to help them develop a healthy attitude towards money.

Here are some of the ways you can talk to your children about money to help prepare them for managing their own finances wisely.

Give them a chance to earn

In a world of instant gratification, it’s important for children to understand where money comes from and how it’s earned. Whether it’s helping around the house, helping Grandparents with a chore, or getting a Saturday when job (when they’re older), children should be encouraged to earn money of their own from an early age.

When they do, talk to them about saving a little each month towards something they really want so they can budget effectively for it. These experiences will give them a greater understanding of the value of money and how long-term savings can reap rewards.

Teach them about budgeting

When your children reach the age of around 9 or 10 (or when they have the basic maths skills to understand how to budget), help them work out a budget to be able to afford an item that they really want by saving a percentage of their pocket money each week. Not only will this help them make choices about how they spend their money, it also instils a saving mentality and help them learn the value of things they want and what they need to do to afford them.

Involve them in the weekly shop

Take your children to the supermarket with you and budget for a weekly shop. Ask your child to choose the best-value combinations of produce to help make your budget work.

Show them the costs of running a home

When they are old enough to understand, show them the costs of running a home so they can appreciate what they need to budget for and how it’s important not to take certain services such as electricity, bin collection and watching the TV for granted.

Start a Junior ISA

Invest in a Junior ISA for your child and contribute a little bit each month to introduce your child to the concept of investing. Show them visual graphs of how their ISA is performing and the potential for growth to involve them in the ISA’s progress and performance.

If you would like to talk more about investing in your child’s future, or the importance of talking to them about money, contact one of our advisors today. 


The value of an investment with St. James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.


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