Understanding money is a vital life skill, one that can shape a child’s future in countless ways. Unfortunately, many children leave school with little to no understanding of how to manage finances, save for the future, or make smart financial decisions.
We believe that teaching kids about money from an early age is essential for their long term success, both personally and professionally. The good news is that parents and caregivers can play a huge role in bridging this gap and setting children up for a lifetime of financial confidence.
Martin Lewis’s Call to Action
Martin Lewis, the founder of MoneySavingExpert and a well known advocate for financial education, has been a passionate voice on the importance of teaching children about money. His call to action focuses on the urgent need for financial literacy to be included in the school curriculum and the role that parents and carers play in filling the gaps.
Lewis argues that financial education should start early, pointing out that many young people leave school with limited knowledge of basic money management, from budgeting to understanding credit and saving. He highlights the long term consequences of this lack of financial awareness, suggesting that without proper education, young people are more likely to fall into debt or make poor financial decisions later in life.
One of Lewis's key messages is that parents and guardians must take an active role in teaching kids about money at home. He stresses that it’s not enough to wait for the education system to address these gaps, financial lessons need to be included in everyday life. Whether it’s through simple conversations about saving or involving children in budgeting decisions, Lewis encourages parents to make money matters a part of their everyday routine.
He also advocates for changes in the national curriculum, calling on the government to ensure that financial education is a mandatory part of secondary school education. He believes that just as students are taught maths and English, they should also be taught the essential life skills of managing money.
Through his work, Lewis has raised awareness of the importance of financial literacy, and his calls to action continue to push for meaningful change in how we educate the next generation about money.
Why Early Financial Education Matters
Early financial education is more than just teaching kids about coins and notes. It's about instilling good habits, building confidence, and preparing them for the inevitable financial decisions they'll face throughout their lives. The earlier young children start learning these essential skills, the more likely they are to grow up with a healthy relationship with money.
Studies show that children who receive financial education are more likely to avoid financial pitfalls as adults. They are also better equipped to navigate life events, such as buying a home, managing debt, pensions and saving for retirement. When children understand basic financial principles, they also develop critical thinking and problem solving skills that are invaluable in all areas of life.
Filling the Gap Left by Schools
Most schools in the UK don’t offer comprehensive financial education. While students may learn maths and economics, these lessons rarely translate to real world money management. For example, students may be taught about the theory of supply and demand, but not how to budget, manage credit, or save effectively. The reality is that many young people leave school with little understanding of how to handle money in their day to day lives.
The good news is that parents, carers, and other trusted adults can fill this gap at home, where the foundations for financial success are often laid.
How to Teach Kids About Money at Home
While schools may not provide comprehensive financial education, there are plenty of ways parents can teach their children about money in a fun, engaging, and practical way. Here are some effective strategies:
Start Early with Simple Concepts
It’s never too early to start talking about money. For younger children, begin with basic concepts like saving, spending, and giving. Use simple language and real life examples to make the ideas relatable. For example, if your child is saving for a toy or treat, explain how putting a small amount of money aside regularly can help them achieve their goal.
Use Real Life Examples
One of the best ways to teach kids about money is by involving them in real life financial decisions. Take them shopping and show them how to compare prices or explain why you might choose to buy a product on sale. If you pay bills, talk to them about the costs involved and how you prioritise wants and needs.
Give Them a Budget
As children grow older, giving them a small budget to manage can have a big impact. This could be an allowance, or you could ask them to manage the money they earn from chores or part time jobs. Help them learn how to allocate money for different purposes such as savings, spending, and giving. Teach them the value of saving for something bigger, like a holiday or a more expensive item they want.
Incorporate Games and Activities
There are plenty of games and activities that can make financial education fun. Board games like Monopoly help children understand money management in an engaging way. You could also create simple “shopping” games at home where kids use play money to purchase items, or start a family savings challenge to encourage saving goals.
Talk About Saving and Investing
As your children become teenagers, start talking about the importance of saving for the future, even if it's just small amounts. Discuss how putting money aside for long term goals, like higher education or a car, can help them avoid debt and live more comfortably in the future. Introduce the concept of investing, explaining that it can help money grow over time and encourage them to take an interest in how investments work.
The Long Term Benefits of Financial Education
By teaching kids about money from an early age, you’re not just setting them up to avoid financial mistakes, you are also giving them the tools to thrive in an increasingly complex world. Financial education fosters independence, resilience, and a sense of responsibility. It empowers children to make informed decisions that can have a positive impact on their future, helping them build a life of financial security and peace of mind.
At Fair for You, we believe that every child deserves the chance to develop these important skills, and we’re committed to supporting families on their financial journeys. The more we can do to prepare the next generation for success, the more we’ll all benefit in the long run.