Teaching kids about money
Man Black Tshirt Holding Baby In Air

Teaching kids about money: a simple guide for parents

Money can feel like a grown-up topic, but some of the best money habits start early.

The good news? You don't need to be a financial expert to teach children about money. Simple conversations and everyday experiences can help children learn the value of saving, spending and making choices.

Here's a guide to helping children build money confidence at different ages.

Ages 3-7: Learning the basics 

At this age, children are learning that money is used to buy things and that choices have consequences.

What they can learn

  • Money is exchanged for goods and services.
  • Saving means waiting for something you want.
  • You can't buy everything at once.
  • Different coins and notes have different values.

Fun ways to teach money skills

  • Let them help count coins.
  • Talk through simple shopping choices.
  • Use a piggy bank or savings jar.
  • Help them save towards a small toy or treat.
  • Read stories that involve spending, saving or earning.

Fun example

Saving for a favourite toy

Your child spots a toy in a shop that costs £10. Instead of buying it immediately, you help them put £1 or £2 into a savings jar each week and watch it grow.

What they learn:

  • Saving takes time.
  • Small amounts add up.
  • Reaching a goal feels rewarding.

Try this

Set up three jars:

  • Spend.
  • Save.
  • Share.

Each time they receive pocket money, let them decide where their money goes.

Conversation starters

  • "What would you like to save for?"
  • "Should we spend this now or save it for later?"
  • "How many more coins do we need?"

Ages 7-12: Building good habits

As children get older, they begin to understand planning, goals and delayed rewards.

What they can learn

  • Why people save money.
  • The difference between needs and wants.
  • How saving regularly can help reach a goal.
  • How choices today can affect tomorrow.

Fun ways to teach money skills

  • Encourage them to save birthday or Christmas money.
  • Create a savings goal chart.
  • Set a target and celebrate progress.
  • Compare prices together when shopping.
  • Talk about online spending and digital payments.

What they learn: setting goals planning ahead and the value of patience.

Try this

Create a savings challenge: "If you save £5 each week, how much will you have by Christmas?".

Let them work out the answer and track their progress.

Conversation starters

  • "What's something you'd really love to save for?"
  • "How long do you think it would take to reach your savings goal?"
  • "What happens if we save a little every month?"

Ages 12+: Preparing for the future

Teenagers are starting to think about independence, future goals and bigger life milestones.

What they can learn

  • Budgeting and managing money.
  • The importance of saving regularly.
  • How to balance spending and saving.
  • Planning ahead for future goals.

Fun ways to teach money skills

  • Discuss future aspirations and their potential costs.
  • Help them set longer-term savings goals.
  • Talk about different ways people manage money.
  • Encourage them to track their savings progress.
  • Discuss future milestones such as driving lessons, travel, further education or other ambitions.

Fun example: The 'Future Me' Challenge

Ask them to imagine they wake up on their 18th birthday and have a savings pot waiting for them. Then ask:

  • What would you spend it on?
  • Where would you go?
  • What opportunities could it create?

Answers might include:

  • Driving lessons.
  • Travelling with friends.
  • Education or training.
  • A laptop for work or study.
  • A big purchase they've dreamed about.

What they learn:

  • Saving with purpose.
  • Delayed gratification.
  • Financial independence.
  • Making thoughtful decisions.

Try this

  • Give them a hypothetical £1,000 and ask:
    • "Would you spend it all today, save it, or do a bit of both?"
  • You might be surprised by their answers!

Conversation starters

  • "What would you like to use your future savings for?"
  • "What's the difference between something you want now and something worth saving for?"
  • "If you had a savings pot waiting for you at 18, what would you do with it?"

It's not always one or the other

Some families choose different ways to save at different stages of a child's life.

What matters most is finding an approach that feels right for your circumstances, goals and the child you're saving for.

The important thing isn't necessarily how much you save - it's getting started and building positive savings habits over time.

Looking at children's savings options?

At Nottingham Building Society, families can learn more about both our For Their Future and our Junior ISA, each designed to support different savings needs and future goals. Both are available to open in branch, where our colleagues can help explain how they work and answer any questions.

Whatever their future looks like, starting a conversation about saving today could help create opportunities tomorrow.

Read more children's savings guides

Compare children's accounts

When it comes to saving for a child, you'll often come across two common options: children's savings accounts and Junior ISAs. Both are designed to help build money for a child's future, but they work in different ways. Learn more here.

Compare accounts

Saving for grandchildren

There’s something special about helping a grandchild prepare for their future. Whether it's a few pounds tucked away each birthday or a little extra at Christmas, saving for a grandchild can be a meaningful way to support them as they grow.

Saving for grandchildren

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