Generic selectors
Exact matches only
Search in title
Search in content
Search in posts
Search in pages

8 Tips for Raising Money Savvy Children

8 Tips for Raising Money Savvy Children

As a Mum of 3, with one recently hitting teenager ranks and with 25 years in the accounting and finance game it is clear to me that children need help with money to become financially independent, successful and savvy.

So how do we raise them to succeed?

  1. Through role modelling provide guidance and teach them early to think with their head not their heart. Some children are naturally more inclined to spend, don’t let them rule the roost with their natural inclination.
  2. Start them young with providing regular pocket money, it helps to familiarise them with the concept of money.
  3. Our children will be less accustomed to cash (whether you like it or not) so build skill with the plastic, debit cards that is. There are great kids debit cards and apps available. Our family use Spriggy.  You download the app and the children receive their own debit card.  You transfer their pocket money and they make purchases on their card and transfer funds to savings and create goals.  They and you can track their savings and spending.  My children advanced in finance skills overnight using this system.
  4. Start on simple budgeting and build their skills so they learn not to spend more than they have! Planning is key here.  Start by setting a budget for an event, ie, $100 for the show to encompass show rides, games, showbags and food.  This is a tried and true method for me and lifts their money game.
  5. As they get older and more capable move them to the 20/50/30 rule and start adding ‘necessities’ into their pocket money.
    1. 20% for savings
    2. 50% for needs (the necessities)
    3. 30% for wants (discretionary)

Work diligently with them to decipher needs v wants.  Caution, the Fear of Missing Out (FOMO) is real, don’t let them be sucked into it!

  1. Encourage investing early and diversification, ie, don’t put all their eggs in one basket. Maybe an interest earning bank account, shares or something else that takes their fancy (no get rich quick schemes here). *Disclaimer – I don’t provide financial planning advice, best to seek professional help.
  2. When they start working encourage them to put a little extra into their super each pay (salary sacrificing). Trust me, their retired self will thank you for it!
  3. Finally, be open and talk about money including warning of the dangers and the opportunities.


  • Don’t molly coddle their finances. Give them guidance but don’t control it as it’s their responsibility!
  • Don’t buy them everything they want – you can say No or make them wait.
  • Credit cards, after pay and loans are NOT their money. They are borrowing it from someone and need to pay it back.  They will be charged handsomely and minimum repayments will never pay down the debt.
  • Don’t let them stick their head in the sand, they are not ostriches.

Let’s create money savvy kids, not only for their future but for ours!

ALY GARRETT Founder/Principal of All in Advisory

Aly is passionate about seeing businesses thrive and adapt in these times of rapid change, ensuring the family groups that own them build wealth for themselves and future generations. ​

Aly draws on over 25 years of experience to deliver customised accounting, taxation, advisory and cloud solutions for her clients. She is recognised as a leader in the tourism industry and cloud revolution space helping to elevate businesses to the cloud and deliver automation to future proof their businesses, delivering efficiencies and improving profitability.

Leave a Reply

Your email address will not be published.