Why do we find it so difficult to talk to children about money and saving?
As someone who has spent years working to support financial literacy and confidence in children and young people, there are two things that I hear from parents: I don’t know how to talk to my child about money; or I wish I’d started having the conversation earlier.
And I understand why. Money isn’t just a practical tool we need to buy goods and services. It’s deeply emotional. Stress, guilt, pride, joy and even shame are all feelings that shape how we handle money as adults – and how we share those lessons with our children.
When finances feel tight, or when saving seems impossible, the last thing many parents want is to share this worry with their children. But avoiding the conversation altogether risks leaving children to develop habits shaped more by advertisements, online influencers and peer pressure than by thoughtful guidance.
Our attitudes toward saving and spending are influenced by far more than numbers on a bank statement. Our personal experiences, memories, feelings, values and dreams all play a role. This is also true for children, who begin to form their own money habits and emotional responses to money long before they ever receive pocket money or open a bank account.
This is why financial education is so important. It’s not about telling children there is one right way and one wrong way to handle money – only the right way for them, considering their circumstances, needs and wants. It’s about giving them the tools to understand their choices, make thoughtful decisions and develop confidence in handling money as they grow.
And that’s exactly what our expert team at JFF is here to support you with.
Our top tips for talking about saving with children
Start early. Read stories together that include financial decision-making. As they grow, introduce concepts like spending and saving using pretend or real money.
Remember you are a role model. Children often learn by watching their parents. Demonstrate financial habits and involve them in your decision-making.
Use real-life examples. Explain real money scenarios to your children, such as how you are grocery shopping on a budget or saving for a family holiday.
Encourage goal-setting. Help your children set financial goals, like saving up to buy a friend’s birthday present or looking at future career options.
Talk about mistakes. Share the mistakes you have made and what you have learned to help avoid similar mistakes and develop critical thinking.
Practice budget making together. Create a simple budget with your child, showing them the difference between wants and needs, and how you allocate money wisely.
Talking about money and saving is a conversion worth having – and it’s never too early to start. There is no perfect script, but by recognizing the emotions tired to money and approaching conversations with empathy, we can give children not just knowledge, but the confidence and self-awareness to manage money throughout life.
Saving isn’t just about coins in a jar. It’s about choices, values, confidence, and ultimately, financial wellbeing. Starting these conversations early, and keeping them open and honest, can make a lasting difference.
As part of UK Savings Week this September, we encouraged families to take the first step in talking about money at home. This national awareness week is a great reminder that even small conversations about saving can have a big impact on children’s future financial wellbeing and confidence.
Our free Let’s Talk About Money at Home guide provides practical advice, conversation starters and activities for young children. It also introduces JFF’s 5 Big Questions about money that every family can ask to spark meaningful conversations:
Where does our money come from?
How can we use our money?
How does money make us feel?
What can we use our money for?
How can we look after our money?
How does our money help other people?
You can access the full guide today and start having empowering conversations about money at home.
Sarah Wallacee
Director of the Just Finance Foundation, Sarah Wallace is responsible for all aspects of the charity’s operations from our London office. She began her career in HR and recruitment before moving into the charity sector, where she has spent over 15 years leading national services across benefits, money and debt advice, employability, domiciliary care, and young carers’ projects.