Raising Financially Confident Kids: Simple Ways to Support Your Child or Teen's Financial Literacy and Money Mindset

We often talk about the importance of maths, reading or healthy eating when raising children — but what about financial literacy?

Helping your child or teenager build a healthy relationship with money doesn’t mean giving them spreadsheets or lectures about compound interest. It’s about giving them the tools, confidence and understanding to make good financial choices now and in the future. It’s also about noticing the money messages we pass on, even without meaning to.

Why aren’t we teaching this in schools?

It still shocks me that financial education isn’t consistently taught in UK schools. Despite being added to the national curriculum for secondary schools in England in 2014, the reality is patchy — many students receive little or no real financial education, especially when it comes to budgeting, emotional spending, or understanding how debt, saving or credit works in the real world.

By contrast, in places like Australia, financial literacy is embedded from early education through to secondary school. One 2021 government report found that Australian students who received structured financial education had significantly better financial behaviours — including being more likely to budget, save regularly, and compare prices before spending.

It makes such a difference when young people are given this knowledge early. And while we wait for the curriculum to catch up, we can start the conversation at home.

1. Talk about money in everyday life

Let them see you making decisions with money — planning for holidays, comparing prices in shops, setting limits. You don’t need to make it a lesson. Just speak out loud as you make choices:

“We’re going to wait before buying this because I want to save for something else.”
“That one’s cheaper online, so I’ll wait and order it later.”

This kind of everyday transparency is a powerful teaching tool.

2. Be mindful of the money stories you’re passing on

If your child often hears things like “I’m bad with money” or “We can’t afford it,” they may absorb those as part of their own belief system.

Try reframing:

• “It’s not in the budget this month”
• “I’m still learning about this”

This keeps the tone neutral and models a growth mindset — one that gives permission to learn and adapt.

3. Give them some money of their own to manage

This could be pocket money, birthday money, or earnings from a part-time job. What matters is that they get to make some of their own decisions and learn from the outcomes.

A simple structure like:

• Spend: for small purchases
• Save: for something bigger
• Give: to help others

…can work really well. It introduces them to prioritising, planning and thinking ahead — but in a way that still leaves room for fun and spontaneity.

4. Teach them to save — even in small amounts

A friend recently told me, “I’ve told my children to enjoy their money now and start saving when they’re 21.” And while I get the intention — that kids should have fun and not feel restricted — I think we’re missing an opportunity if we wait that long.

Saving isn’t about depriving yourself. It’s about learning how to delay gratification, set goals, and feel a sense of agency over your future. That mindset doesn’t magically kick in at 21. It builds up in small steps from a young age.

Even putting aside 10p from £1 can help a child get used to the habit. And the earlier they start, the more natural it feels later on — not as a chore, but as something that helps them feel secure and capable.

5. Use mistakes as learning moments

If they blow all their birthday money in one go, don’t swoop in with criticism. Be curious together:

“How did that feel?”
“Would you do anything differently next time?”

Mistakes are great teachers — as long as we don’t wrap them in shame.

6. Involve them in low-stakes decisions

Planning a party? A supermarket shop? Let them help. It builds skills around budgeting, compromise, and decision-making.

Older teens can explore budgeting apps, online banking, or learning how payslips work. It’s less about knowing everything and more about helping them feel confident asking questions.

7. Talk about values, not just numbers

Help them think beyond “how much” to “what matters.”

• Would they rather spend money on experiences or things?
• What would they love to save up for?
• Is there a cause or person they’d like to support?

This builds a relationship with money that’s rooted in meaning — not just performance or pressure.

8. Model imperfection

You don’t have to get it right all the time. In fact, it’s powerful to say, “I wish I’d learned this earlier,” or “I’m figuring this out too.”

That shows them money is something we learn and grow with — not something we’re either good or bad at.

Final thought

Financial literacy isn’t about turning your child into a mini-investor or giving them anxiety about money. It’s about helping them feel informed, confident, and in control of their choices.

And in a world where money can be a huge source of stress, that’s a gift that will stay with them for life.