4 Practical Ways to Teach Your Child About Money

Money talk with kids is one of those topics most parents keep putting off. It feels awkward, right? You’re probably sitting there thinking, “They’re too young to worry about bills, taxes, and savings accounts. Let them just be kids.” But then you also see them on YouTube clicking ads faster than you can blink or trying to convince you to buy yet another skin on Fortnite. The truth is, the digital space doesn’t wait until they’re eighteen to bombard them with money choices. If anything, it shows up sooner, louder, and shinier.

I work in the tech industry, and one thing I’ve learned is that the internet doesn’t babysit your child’s wallet. If you don’t train them on money practice early, the digital world will. Think about it: apps now have sneaky subscription models, games push digital purchases, and influencers make unboxing videos look like the new must-have lifestyle. Kids see it all, and they start linking happiness with spending without ever learning about saving. And when you try to step in later, you feel like the boring parent who doesn’t “get it.”

So, I started experimenting with small ways to teach my kids about money. Not in some perfect, boardroom-approved plan, but in messy, real-life steps. Sometimes it worked, sometimes it didn’t. Sometimes they rolled their eyes at me, and sometimes they surprised me with wisdom I didn’t even expect. This post is a mix of that lived experience and what I’ve seen from other parents in my circle. If you’ve been wondering whether child money practice even works or just sheds into thin air, I’m here to say it’s worth it. Let’s get into it.

4 Practical Ways to Teach Your Child About Money

Here are 4 ways to teach children about money;

1. Make Money Tangible in a Digital World

When I was a kid, money meant coins and notes. You could feel it, count it, stash it under the bed if you wanted. Our kids? They see us swipe cards, tap phones, or order things online with no cash in sight. To them, money is invisible magic. And invisible things are hard to respect. That’s why your first step should be to make money tangible again.

You can start with something as simple as jars or envelopes. Three jars: spend, save, and give. Any allowance, birthday money, or earned cash goes straight into one of those jars. It feels physical, it feels real, and kids can literally see the levels rise or fall. When my son spent half of his “spend jar” on a gaming gift card, he got to see the jar look emptier than he expected. That visual hit him harder than me nagging him ever could.

Now, because we live in a digital world, I also tie it to tech. There are apps like Greenlight or GoHenry that act as kid-friendly debit cards. These apps let kids practice spending while parents get notified. It’s like training wheels for digital money practice. My daughter gets a small weekly allowance that loads directly onto her card, and she has to budget for her Roblox purchases. She hates it when her balance hits zero, but she’s learning.

The mix of old-school jars and new-school apps creates balance. Kids feel the weight of money in their hands and also learn how to manage it online. That way, they don’t grow up thinking digital wallets are just infinite pools of magic numbers. They learn money is real, whether it jingles or sits behind a screen.

2. Teach Through Everyday Scenarios

One Saturday morning, we were grocery shopping. My son saw a box of cereal with his favorite cartoon character. “Can we get it?” he asked. Normally, I’d just say no or cave in, depending on my mood. But instead, I said, “You’ve got five pounds in your spend jar. Do you want to use that?” Suddenly, the question became real. He hesitated. “But then I won’t have money for my game.” Exactly. That was the lesson.

Everyday life is full of money practice opportunities if you let kids be part of the decision-making. Let them see the budget conversation when you’re meal planning. Show them how comparing prices online can save a few dollars. Let them sit with you when you renew your Netflix subscription and talk about what subscriptions cost in total. These little peeks into how money moves in the digital space stick way better than lectures.

One thing I’ve done is create “digital check-ins” with my kids. We sit down once a month and go over what they spent online. We look at their app purchases, game add-ons, or even small donations they made to creators. Sometimes we laugh about it. Sometimes I’m frustrated at how quickly their balance drained. But we always talk about it openly. It’s not about shaming them. It’s about making them think: Did I get value from that purchase? Would I do it again?

The point is, kids don’t learn money habits from textbooks. They learn from watching you and from trying things themselves. When everyday situations turn into teaching moments, you’re giving them a soft landing before real mistakes cost them more than a few quid.

3. Introduce Earning, Not Just Spending

Allowance is cool, but let’s be honest, kids often see it as free money for existing. If you want them to build respect for money, tie at least part of their income to effort. I’m not saying turn your home into a sweatshop. But small jobs go a long way.

In my house, screen time and earning time sometimes go hand in hand. If my son wants an extra hour of PlayStation, he might need to help me sort cables in the garage or do a little coding exercise (yes, I’m that tech parent). My daughter loves crafts, so we encouraged her to sell handmade bracelets to her friends. The smile on her face when she made her first “real” sale was priceless. That one moment taught her more about money than weeks of lectures could.

We also talk about the digital side of earning. Kids today are fascinated by creators, streamers, and YouTubers. Instead of rolling my eyes, I show them the reality. We talk about how creators earn through ads, sponsorships, and merch. Sometimes I even show them behind-the-scenes from my own tech projects so they understand money comes from creating value, not just being online.

When kids start connecting effort to income, they approach spending differently. That $10 Roblox card suddenly feels heavier when it cost them two weekends of washing the car. And as parents, we want them to carry that weight into adulthood, where work and reward are inseparable.

4. Normalize Talking About Money

This might be the hardest one, especially if you grew up in a household where money was either a secret or a source of tension. For years, I avoided talking about salaries, bills, or savings with my kids. But then I realized: if I don’t talk to them, the internet will. And trust me, the internet has no chill when it comes to pushing “get rich quick” nonsense.

So I started being honest. Age-appropriate honesty, but honesty all the same. I tell them when a subscription price goes up. I explain when we can’t afford certain extras and why we prioritize others. When my daughter asked me how much I earn, I didn’t panic. I gave her a ballpark number and explained what part of that goes to bills, taxes, savings, and fun. She was shocked at how little was left for “fun.” That shock was good.

Conversations don’t have to be heavy. Sometimes they’re playful. My son once asked why I don’t just “make more money” since I work with computers. I laughed but then used it as a chance to explain how income isn’t unlimited. These chats are messy, imperfect, and sometimes awkward. But they plant seeds. Kids who grow up hearing open conversations about money carry less shame and more curiosity.

If you’re in the UK or US, you’ll know money talk is still a bit of a taboo. We’ll complain about taxes over a pint or joke about being broke, but real conversations often stay locked away. Let’s break that cycle for our kids.

FAQ Section

Do child money practices really work, or do they just shed away after a while?

They work if you’re consistent. The trick isn’t one big lecture but a string of small, real-life moments that build over time.

What age should I start teaching my child about money?

As early as four or five. At that age, they can grasp simple concepts like saving and spending. The complexity grows as they do.

Is it okay to let kids make money mistakes?

Yes. In fact, it’s necessary. Better they blow $20 now than run up a $2,000 credit card bill at nineteen.

How do I handle peer pressure and spending?

Talk about it openly. Kids want to keep up with friends. Help them weigh if a purchase is worth it, and remind them of their goals.

Should I give digital allowances?

Absolutely. In a digital-first world, they need practice managing money that doesn’t clink or crumple.

Final Thoughts

Teaching kids about money isn’t about raising mini accountants. It’s about preparing them to face a world where money choices are constant and often invisible. Whether it’s jars on a shelf or debit cards for Roblox, the goal is to make them think, pause, and choose with intention.

As parents, especially those of us in the digital and tech space, we have a front-row seat to how money is shifting. We see subscription creep, pay-to-play models, and influencers selling lifestyles daily. Our kids see it too, and they need us to guide them through it.

It won’t be perfect. You’ll mess up, they’ll roll their eyes, and sometimes you’ll feel like you’re talking to a wall. But slowly, surely, they’ll get it. They’ll surprise you with wise choices and even call you out when you slip. That’s when you’ll know it’s sinking in.

So, fellow parents, whether you’re in the UK, the US, or somewhere in between, let’s lean into the awkward, imperfect, and necessary conversations. Let’s make money practice part of family life, not some hidden mystery. After all, if we don’t teach them, who will? And wouldn’t you rather they learn from you than from the next flashy ad on their screen?