Only 48% of UK children receive any financial education, yet money habits are largely formed by age 7. You don't need a finance degree to teach your kids about money — just everyday moments turned into learning opportunities. Here's what to cover at each age.
Ages 3-5: Basics of Money
At this age, make money tangible and real:
- •Let them handle coins and notes — sorting, counting, identifying
- •Play 'shop' with real coins and priced items
- •Introduce 'save, spend, give' with three jars
- •Use physical piggy banks they can watch filling up
- •Talk about choices: 'We can buy this OR that, but not both'
Ages 6-9: Earning and Saving
Introduce earning, planning, and delayed gratification:
- •Start pocket money (average UK amount: £3-5/week for this age)
- •Tie some money to chores to teach earning
- •Help them save for something specific — a toy, game, or experience
- •Open a children's savings account (most banks offer them)
- •Let them make small buying decisions and experience the consequence (buyer's remorse is a powerful teacher)
Ages 10-13: Budgeting Basics
Time for more responsibility:
- •Increase pocket money with the expectation they cover some of their own 'wants'
- •Introduce the 50/30/20 concept in kid terms: needs, wants, savings
- •Show them your shopping receipt and talk about value
- •Discuss advertising tricks and marketing manipulation
- •Consider a prepaid debit card (GoHenry, Rooster Money) for hands-on money management
- •Encourage a 1p saving challenge — they'll love watching the jar fill up
Ages 14-17: Real-World Finance
Prepare them for financial independence:
- •Open a teen bank account with a debit card
- •Explain payslips, tax, and National Insurance (show them yours)
- •Discuss student loans if university is on the horizon
- •Talk about credit scores, debt, and interest rates
- •Encourage part-time work for real earning experience
- •Match their savings: if they save £50, you add £25 — mirrors the LISA bonus concept
FAQ
How much pocket money should I give?+
There's no right answer, but £1 per year of age per week is a common rule (£7/week for a 7-year-old). More important than the amount is teaching them to budget, save, and make choices with it.
Should pocket money be tied to chores?+
A hybrid approach works well: a small base amount unconditionally, plus extra for specific chores. This teaches that some things are expected (basic household contribution) while effort earns rewards.
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