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How should we talk to our kids about money?

The piggy bank has always been a traditional gateway for children to learn the importance of saving their pocket money — but, given these turbulent times, this simple lesson may no longer be enough.

Deciding how and when to discuss finance with our kids can be difficult. Some primary schools have access to the Bank of England-backed Money and Me programme1, which teaches key financial concepts and how to manage money at a young age. The real learning, however, will always start at home; how you manage your spending (and saving) will always be the most significant lesson for your children. So, how can you engage your children with successful money management?

An important step is building familiarity. Let your kids handle money and see the value it holds. Introduce the idea of purchases that are ‘essential’, such as food basics, and those that are ‘luxury’, such as a magazine. This will help develop a sense of value and perspective when it comes to finances; that everything has a cost and needs consideration. That way, when you do finally introduce the humble piggy bank, the concept of budgeting will already be clear.

For older children, being given financial responsibility is a vital part of growing up. Set the right example by explaining how you plan your money for the short, medium and long-term, or opening a savings account with them, so they can see how interest works as an introduction to very low-risk investing’. When they receive money for birthday and Christmas, encourage the discipline of spending half and saving half.

However you choose to prepare your kids, there are resources available to support you. Speak to your children’s school to find out how they teach money in their curriculum — or try asking an adviser for simple ways to present financial concepts (you might learn something new yourself!)

Teaching kids about money from a young age sets them up for a solid financial future. They’ll have the knowledge and skills to make wise money choices. They may not be experts in finance but teaching them about money early on sets the stage for a financially secure future. Below are some effective tips for teaching children financial literacy, ensuring they have the tools they need to become smart money managers.

  1. Start with the basics 

The younger kids understand money, the better. You can introduce the concept of money by giving them a set amount and asking them what they can buy with it. This can evolve into teaching them about saving for things they want or setting rules for spending. Basic money skills will serve them well throughout their lives.

  1. Review your own habits 

Around half of parents feel uncertain about talking to their kids about money. But you can make a difference by reviewing your own financial habits and knowledge. By demonstrating good money management practices, you’ll emphasize the importance of financial responsibility to your children. Start by exploring key building blocks for financial resilience.

  1. Open an investment account for them 

As kids grow older, hands-on experience with money becomes crucial. Opening an investment account for your child is an excellent way to teach them about saving and investing. Junior ISA is an option that’s easy to set up, offering a tax-efficient way to save or invest for your child’s future. It’s a valuable learning experience and can be managed right from the comfort of your home.


Financial literacy helps kids develop smart spending and saving habits. These habits will guide them as they grow into financially responsible adults. When kids understand financial concepts, they gain the confidence to manage their money independently. This self-reliance is a crucial life skill.

It is always worth speaking to a financial adviser before making any decision to make sure the strategy you are about to implement suits your needs as there might be more appropriate options that will work better in your circumstances and for your children.

James Turner, is a Financial Planner at Amanda Redman Financial Planning, a Partner Practice of St. Jame’s Place Wealth Management. For further advice and to speak to James please email:

The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.

The levels and bases of taxation, and relief from taxation, can change at any time. The value of any tax relief is generally dependent on individual circumstances.

Amanda Redman Financial Planning is an Appointed Representative of and represents only St. James’s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the group’s wealth management products and services, more details of which are set out on the group’s website The ‘St. James’s Place Partnership’ and the titles ‘Partner’ and ‘Partner Practice’ are marketing terms used to describe St. James’s Place representatives.

SJP Approved 03/01/24
1. Money and Me, Bank of England, 31st of January 2023

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