How to teach children about money

Children can practise money decisions through ordinary activities: choosing between two items, saving towards something they want and checking how much remains after a purchase. Use examples that suit their age and your household budget.

Start with choices

With younger children, use coins to practise counting and discuss simple choices when shopping. Explain the difference between something the household needs and something it would like. There is no need to share adult debt worries to teach a small spending decision.

Make saving visible

If an allowance fits your budget, agree how often it will be paid and what it should cover. A jar, envelope or written record can show spending and saving separately.

For example, a child saving for a R100 item with R20 available each week can mark five steps towards the goal. Discuss what happens to the plan if some of the money is spent on something else. The aim is to practise choices, including small mistakes.

Add responsibility gradually

As children grow, agree on a few expenses they will manage, such as entertainment or a gift. Review the plan together before adding more responsibility.

• Compare prices and check the full amount before buying.
• Keep a simple record of money received and spent.
• Set a savings goal with an amount and a realistic plan.
• Discuss advertising and how a discount can encourage an unplanned purchase.

Explain how borrowing changes the cost

Use a written example to show that interest and fees can make a purchase cost more than its cash price. Explain that a monthly instalment still needs to fit alongside other expenses. You can explore an example together with the total cost of credit calculator.

Prepare teenagers for regular expenses

Help a teenager build a small budget for the expenses they actually manage. If they use a bank account, go through the statement, fees and safe handling of cards and account details together.

Discuss income after deductions, regular bills and the difference between using money already available and borrowing. Avoid presenting new credit as a necessary milestone.

Use the household budget as a practical example

Show how you plan for food, transport and other essentials before optional spending. Keep the discussion age-appropriate and make it clear which decisions remain an adult's responsibility.

Our five-step budget guide gives you a format to adapt. For help with the household figures, read about budgeting support.