Pocket change convos – how to talk to your kids about money

Building a healthy relationship with money from an early age is important for financial empowerment in the future. Parents, no matter their financial situation, have the power to influence how their kids interact with money.

You don’t have to be an expert, and you don’t even need to dole out pocket money. It can be as simple as introducing them to the concepts of earning, spending, saving, and donating. 

You can gently expose them to your financial habits and decisions and make a point of letting them handle some cash to watch it grow or diminish on a trip to the shops – something that is especially important in this age of digital payments like Tap & Go cards or through your phone.

Here are some other top tips to get kids started on their money journeys.

• Introduce them to the nature of your work, how you earn money, and why – to keep the household running, to pay for their school and sport, to save for holidays
• Get them involved in decisions – what do they think are the necessities, what are the needs of the family, and what are the wants
• Choose a charity cause that you donate to or fundraise for together to teach them about the concept of sharing and helping others
• Have a money date night at home where everyone picks something they want to save for
• If you can afford it, offer the chance to earn pocket money for chores, and make sure to withhold it if tasks are not complete – they can choose to spend, save, or donate
• Research an item they want together, and try to find the best price – have conversations with them about putting things off until sale times or a big milestone event like a birthday or Christmas.

Learning to save has never been so easy with Police Bank’s Dynamo children’s saving account, available up to 12 years of age. With no monthly account keeping fees, depositing just $5 a week will receive a bonus rate of interest to accelerate savings (T&Cs apply).