From toddlers to teens: Age-appropriate ways to teach children about money

Because Who Knew Piggy Banks Could Be So Complicated?

Published: 06 Mar 2025

If you're like most parents, the idea of discussing finances with your children ranks somewhere between "cleaning the gutters" and "getting a root canal." But fear not! We're here to make this journey as enjoyable as a trip to the sweet shop (minus the sugar crash).

Ages 3-4: The Toddler Tycoons

Ah, toddlers. They're cute, curious, and think money grows on trees. This is the perfect age to introduce basic financial concepts. Start with a coin jar. It's like a piggy bank but more transparent—literally. Your little one will love watching the coins pile up, and you'll love the opportunity to teach them that money doesn't just appear out of thin air.

Pro Tip: Use storybooks and games to make learning about money fun. 

Ages 5-7: The Mini Money Managers

Your child is now developing their own personality and preferences, which means it's time to step up your financial game. Introduce a small allowance tied to chores. This teaches them that money is earned, not given. Plus, it's a great way to get them to clean their room without resorting to bribery (well, sort of).

Pro Tip:  Let kids help with making a shopping list and comparing prices in-store, teaching them to prioritise needs over wants and understand the value of money.

Ages 8-10: The Savvy Savers

These are the golden years for teaching basic money management. Increase their allowance and introduce the concept of saving for longer-term goals. If they run out of money, resist the urge to bail them out. Instead, offer extra chores to earn more. It's a tough lesson, but one that will pay off in the long run.

Pro Tip: Encourage your child to save for something big, like a holiday gift or a new gadget. 

Ages 11-13: The Tween Treasurers

Right about now, they're entering the 'I know everything' phase. Use this to your advantage by giving them more financial responsibility. Pay their allowance bi-weekly and let them manage their own budget. This is also a great time to introduce the concept of giving to others.

Pro Tip: Allow small loans to teach them about debt. Just make sure they understand that "loan" doesn't mean "free money from Mom and Dad."

Ages 14-16: The Teenage Tycoons

Teenagers watch and learn from you, even if they pretend not to. Peer pressure is at its peak, so keeping tabs on their spending is crucial. Allow a few "want" purchases but balance them against budget needs. Consider extending a loan for a significant purchase to teach them about repayments.

Pro Tip: Introduce technology to monitor spending and budget tracking. 

Ages 17-18: The Future Financiers

Your teen is on the brink of financial independence. It's time to set realistic expectations about college costs, buying and insuring their first car and future earnings. Encourage them to get a part-time or summer job to add to their savings. Continue to monitor their spending and engage in conversations about money.

Pro Tip: Discuss the importance of safeguarding personal data. Teens are tech-savvy but can be susceptible to scams. Make sure they know how to protect themselves.

Watch our short video from some of Ireland’s top brokers for more pro tips.

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Transcript  for video Teaching kids about money - advice from brokers

Why is it important to teach kids about money?

Ellen: Teaching children about money is one of the most fundamental skills that you can give them to prepare them for when they're older.

Emma:  I suppose younger now, I think children are more financially aware, and I suppose at home I'm more open, but my kids about money and what they can and can't have. And I think that just resonates with them.

Graine: The world that we live in today, it is such an expensive place to live, so it's important for our children to understand, study hard in school, get a good job and you know, they would hopefully have the nice things that we would have growing up.

What financial skills should parents teach children?

Vanessa: To meet us five key financial skills that a parent should teach their children.

The first one, which is you need to earn your money. You then need to be able to budget and spend your money wisely. Then only then, when you master the first three, can you start saving and make your money grow, invest your money.

Elanna: I know for young children that could be a little bit difficult, but it's definitely important for them to know that they could put their money into a savings account and they can slowly grow.

How do you teach younger children about money?

Ellen: It’s a joke in our house that we have to have to earn their pocket money and they earning their pocket money be walking the dog or making their bed, or they say homework is they would have to do their homework anyway.

Elanna:  I recently did one with my daughter that it was a savings book, and we put stamps into a book and then each stamp represented €1.00 and then when she got to €20, we lodged it into her post office account.

Teaching teenagers about money

Vanessa: I think you need to lead by example practise what you preach and be open about money. Be open about you earn money. About you spend your money.

Ellen: I think what's really important is to have the courage to say no because if you're saying yes all the time back to that money has no value, it grows on trees. It comes from somewhere. It's going to be my saviour right throughout my life. And that's not reality and we're not doing many favours if we're not preparing them for that.

Emma: Because that's difficult, I think nowadays. Because of social media, so I think it's about, you know, them knowing that they don't have to keep up with the Joneses, let's say and, you know, keep on, keep up with their friends. It's important for them that they, you know, they have a saving habit and they can see their money adding up.

What’s the most important money lesson for children?

Graine: I think it's important for your children to realise that if you save even with part time jobs, if you save a little bit of that every single week, you quickly have a little rainy day fund for kind of a special times and you know, special holiday and that kind of thing.

Ellen: I would be really happy with myself, and I think my husband would be, if we got them to a level and stage in their life where they're financially independent. But if they don't know how to manage their money or they don't know how to save or they don't put a value on us, they're going to struggle. Later on in life, if they can strive to become financially independent, I think that's a really good job, well done for any parents.

What’s the best piece of financial advice you received as a young woman?

Michele: I suppose setting up a pension as early as possible, even if it's only small contributions, because the longer you're contributing, the better your future financial position will be. This is particularly important for women, as they are often taking breaks from making pension contributions. And that's due to maternity leave or caregiver leave. This has been supported by research which says that women often to have to work eight years longer than men in order to end up with the same pension pot.