Understanding financial education for kids is essential for setting them up for long-term success. Teaching Aussie children about money from an early age empowers them to make informed financial decisions and build lifelong habits that support their financial well-being.
In this guide, we explore when kids should start learning about money, how to introduce key financial concepts, and strategies for both schools and parents to make learning practical and effective.
Why Start Financial Literacy Early?
Starting young gives children the advantage of forming responsible financial behaviours before negative habits take hold. With Australia moving toward a cashless society and financial tools becoming more complex, young people need a solid grounding in how money works.
Teaching kids to save a portion of their allowance or pocket money for future goals encourages them to think long-term, rather than spending impulsively. Early lessons in money can include saving for a new toy, understanding the cost of groceries, or learning the difference between ‘needs’ and ‘wants.’
Financial literacy also helps children:
Understand the value of money
Set and work toward financial goals
Develop decision-making skills
Learn consequences of spending
According to a 2023 ASIC report, only 33% of Aussie teenagers felt confident managing their money. This highlights a strong case for introducing financial education earlier.
Age-Appropriate Financial Education for Aussie Kids
Preschool to Primary School (Ages 3–11)
Children in early learning can grasp basic financial ideas through storytelling, play, and real-life examples. Some simple ways to introduce money concepts include:
Using a piggy bank to save coins
Playing shop games to teach buying and selling
Explaining the difference between notes and coins
Letting them pay at the checkout occasionally
Younger children can also be introduced to ideas like giving to those in need or saving for something special. Activities like sorting coins, watching change add up, or earning money through small chores are helpful.
Middle School (Ages 12–14)
As children grow, they develop more advanced thinking skills and are ready for topics like:
Creating a simple budget
Tracking spending
Comparing prices when shopping
Understanding what a bank account is
These lessons can be introduced through pocket money discussions or planning a small event like a birthday party. Encourage kids to set a savings goal and track progress over time. Some Aussie families use ‘spend, save, give’ jars to divide allowance money into different purposes.
High School (Ages 15–18)
Teens are preparing for adult responsibilities and financial independence. Financial education should include:
How to open and use a bank account
Basics of credit and interest
Understanding superannuation
Introduction to investing and shares
Budgeting for larger expenses like a mobile phone, car, or uni
Real-world scenarios—like planning for schoolies, getting a part-time job, or understanding student loans—help make these concepts relevant.
According to the Reserve Bank of Australia, fewer than half of young adults know how interest rates affect credit cards. These lessons can change that.
Financial Education in Aussie Schools
While some schools have begun integrating money management topics, financial education in Australia isn’t yet compulsory nationwide. However, it can be embedded across subjects like Maths, Business Studies, or even Home Economics.
Financial education in schools can include:
Budgeting simulations
Classroom currency systems
Guest talks from financial experts
Planning fundraising events or market days
When financial literacy is taught in school, students are better prepared to handle real-life financial choices. Programs like MoneySmart by ASIC offer free tools and resources for schools to build their curriculum.
Teaching Financial Literacy at Home
Parents are a child’s first teachers—and that includes money. Everyday moments can become teachable ones. Involving children in simple financial decisions can demystify money.
Tips for financial education at home:
Discuss your family budget (age-appropriate)
Let children help compare prices at the shops
Use rewards or savings charts to teach goal-setting
Encourage earning pocket money through tasks
Save together for family outings or wish-list items
Modelling smart spending and saving habits at home builds a financially aware household. Watching parents budget, save, or plan for holidays teaches children the practical side of money.
Making Financial Education Fun and Engaging
To hold a child’s interest, financial education should be hands-on and fun. Aussie kids respond well to interactive, visual learning styles.
Some fun ways to teach money concepts:
Play board games like Monopoly or Pay Day
Use educational apps like Spriggy or Pocket Money
Visit local banks to explain savings accounts
Start a mini family business like a lemonade stand
Using challenges—like “no-spend week” or “save $5 a week for a month”—can help reinforce consistent saving habits. Celebrating financial milestones also keeps kids motivated.
Combining School and Home Learning
A dual approach, combining classroom instruction with home learning, reinforces financial principles. Parents and teachers can align messages to ensure consistency.
Benefits of combined learning:
Builds financial confidence
Reinforces practical money habits
Encourages kids to ask questions
Shows money is a life skill, not just a school subject
By working together, families and schools give children the tools they need to become capable, financially independent adults.
Empowering Future Financiers
Financial education for kids is a critical life skill that goes beyond just maths and money—it teaches decision-making, delayed gratification, and goal-setting.
By starting young and reinforcing key concepts over time, we help our children navigate the world of money with confidence. Whether it’s through hands-on lessons at home or structured programs at school, teaching kids about saving, budgeting, and planning sets them up for financial success.
We all want to see Aussie kids thrive. One of the best ways to prepare them is by giving them the skills to make smart financial choices from the start.
FAQs
1. When should kids start learning about money?
As early as preschool, using coins, games, and savings jars.
2. What should primary school kids learn about finance?
Basic budgeting, needs vs. wants, and saving goals.
3. How can I teach my child about saving?
Use jars, charts, and reward milestones for saving money.
4. Are schools in Australia teaching financial literacy?
Some do, especially with programs like MoneySmart, but it’s not yet compulsory.
5. What’s the best way to teach teenagers money skills?
Make it real—use part-time jobs, budgets, and future planning like uni or a car.
