Helping Our Kids Get Money-smart

Think how long it takes to get your head around even the most common financial jargon. So, with children you need to start small - and simple.

“Their brains are very much growing and developing. They have a lot less knowledge than we do,” clinical psychologist Sara Chatwin says.

Introducing one or two new concepts or ideas is often enough.

For example, if the family is planning to save for a big goal like a holiday, have your child draw a picture of what that goal looks like and put it on the fridge.

Financial advisor Lisa Dudson says talking to your child about choices can be a great introduction to the value of saving.

“You can do small, like ‘we can do pizza or we can go to the movies, but not both’,” she says. “Or if they are a bit older, try bigger – we can get a new TV or we can go on holiday, but not both. Let them get a bit invested in it.”

As a child gets older, they can understand money going into a savings account or contributing towards achieving a goal. Seeing savings grow helps build excitement and momentum.

Pocket money can be a great way to help your child relate with money and its value.

Experts suggest making money tangible, especially for younger children. Look at coins and dollar notes and discuss their worth.

Teaching young children, visually, that money has a form and that spending money means it’s gone will set them up with a good understanding for future learning.