Financial education is set to become part of the national curriculum for primary and secondary school pupils from 2028, but parents can already start teaching their children about money from now. It is not solely up to teachers to educate children about financial matters; there are many lessons that can be imparted at home, often without the child even realising they are learning.
Starting money lessons early can significantly boost a child's financial literacy skills. There are steps you can take from the very day they are born. From playing shops to giving pocket money, here are the key ages that experts suggest money lessons should be taught.
At Birth: Open a Junior ISA
Saving and investing might not be the first thing on your mind when you have a baby, but it can be an excellent time to open a Junior ISA (JISA). These accounts can be opened by parents, and up to £9,000 can be saved or invested tax-free per year, with anyone able to contribute. The child can access the money from age 18.
Sarah Coles, head of personal finance for AJ Bell, said: “The sooner you open a Junior stocks and shares ISA for them, the more time it will have to grow. You can gradually introduce them to their JISA as they grow up.”
Ages 3-5: Learn the Basics
Experts suggest that ages three to five are ideal for children to learn the basics of exchange and the value of things. This can be achieved simply by playing shop. Financial coach Claire Saunders of Mint Coaching recommends that in the early years, children are simply learning what money is. It is worth providing real-world exposure, such as paying in shops, handling coins, noticing prices, and working out simple change.
She said: “These small, practical moments build comfort and familiarity without pressure. It’s also where a child’s early money narratives begin to form. Phrases like ‘we can’t afford that’ or ‘money doesn’t grow on trees’ are absorbed quickly, so awareness of tone matters. The aim is for money to feel calm, normal, and part of everyday life rather than something stressful or avoided.”
Ages 6-10: Introduce Pocket Money
Once your children start school, it may be a good time to introduce pocket money, either as a reward for chores or to teach them about spending choices. Coles suggests this reduces “pester power” because instead of asking for sweets or small treats whenever you are out, you can tell them that if they want something, they can spend their pocket money on it.
She said: “It doesn’t need to be much to start with, it’s just the idea of having their own money and getting to make some early decisions about prioritising spending. As they get older, you can give them a pay rise.”
Ages 11-12: A Child’s First Bank Account
Children’s bank accounts can be opened from age 11 and are a great way to teach kids about budgeting and managing their allowance, especially as many will be getting their first debit card. Some accounts even pay interest, providing an opportunity to teach children about savings.
Coles said: “You can help them manage their money and encourage them to switch some into savings, to build good money habits as young as possible. At this age they’re likely to make some poor decisions, but they can’t go far wrong given the sums involved, and at least it’s a chance to learn.” Some accounts let the parent manage access or amounts via an app.
Ages 13-15: Work for It
From around age 13, a child could start earning their own money. This could be through chores around the house or odd jobs such as dog walking or washing cars. Some parents pay their children for jobs they believe they should be doing anyway, like tidying their room. Others expect this as a bare minimum and pay them for extra jobs like ironing or gardening. Whichever approach you choose, it is about learning the value of work and effort to eventually exchange this for buying power.
Ages 16-18: Prepare for Adult Life
From around age 16, your child will be looking towards higher education or even leaving school and getting a job. They may be seeking ways to earn cash to go out with friends or pay for their own holidays. Saunders said: “This is a good time to introduce a simple structure that mirrors adult life, where money is divided into different purposes: short-term spending, longer-term saving, something specific they are working towards, and a small buffer for unexpected costs.”
If you have done the groundwork in their younger years, said Stacey Morris, financial adviser for BlackFin Independent Wealth, now is the time to trust your children. She said: “It should be a matter of watching them put in place all the learning, but occasionally making a few bigger mistakes. They will splurge on items that you consider frivolous - but only through this process will they properly be thinking about money.” And, perhaps, seeing and learning from the after-effects of those occasional impulse purchases.
Age 18: Time to Cut the Purse Strings?
Your child is now an adult and can spend, save, or splurge that JISA you opened when they were a baby. They can make their own financial decisions, but that does not mean support should stop. Saunders said there should always be opportunities to talk openly about money. She said: “There is no fixed point at which financial support from parents should automatically stop. For many families, the ‘Bank of Mum and Dad’ now extends well beyond 18, into university, early careers, and even housing support.”
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