A 2024 survey by Greenlight Financial Technology, conducted through Researchscape, revealed that a remarkable 91 per cent of children and teens aged 10 to 19 consider money skills vital for achieving their life goals and naturally, they look to their parents for guidance. Yet surprisingly, only around 23 per cent have regular conversations about money at home.

Clearly, parents are the foundation of financial education, and there’s a glaring gap that schools simply can’t cover. With advancements all around us it is shocking to note that around 40 per cent of young adults with low financial literacy rely on parents as their main source of money know‑how. Let’s see how parents can guide their children on money matters.

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Early years (Ages 4–7): Building Basics

Even preschoolers form emotional ties to money by the age of 5, what behavioural scientists call “tightwad” or “spendthrift” tendencies. These early habits influence how they deal with money much later in life. 

What parents should do:

• Use real coins and change to teach counting and value.
• Introduce simple tasks like offering pocket money for small achievements.
• Frame money as a tool, not a toy. Instilling needs vs wants awareness.

Make it fun and hands-on. At this age, money literacy means helping them grasp that every coin counts.

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Middle childhood (Ages 8–12): Lessons in Saving and Budgeting

As kids approach adolescence, they’re ready for more. Experts suggest allowing them to manage small budgets for treats, school outings or gifts. 

What parents should do:

• Help set savings goals. Example: saving for a new game.
• Introduce basic budgeting: dividing allowance into spend, save, and share jars.
• Involve them in family decisions: compare grocery prices, review bills, and explore deals.

By this stage, children start forming money attitudes based on experiences, not just lessons. 

Teen years (Ages 13–17): Real‑World Money Management

Teens crave autonomy. They’re ready to explore allowances, part‑time jobs, bank accounts, and even a first debit card. An Intuit Survey showed that 85 per cent of the US teens want financial education in school, and 95 per cent even found it helpful when they got it.

What parents should do:

• Facilitate part‑time work or side hustles for real income flow.
• Open a youth bank account and teach interest, debt, and credit.
• Lay the groundwork: explain interest, credit scores, taxes, and investing basics.
• Use tools and apps to track money and simulate investing.

Parenting tip: Research reveals that teens skills in budgeting and talking about money give them confidence and agency, making them more likely to avoid poor financial choices.

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Young adulthood (Ages 18–21): Nurturing Independence

By now, teens are either heading to university, an apprenticeship or work and they’ll soon face real bills, student loans, and full financial independence.

What parents should do:

• Help them calculate realistic income vs expenses like rent, food, and transport.
• Encourage responsible credit use, with clear discussion of risks.
• Talk about student loan options, saving for retirement, or paying off debt early.
• Introduce investing, pensions and tax basics.

Studies show that self‑confidence plays a big role in financial success: teenagers who believe in their money‑management ability perform significantly better.

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Street Smart Tips for Parents

1. Be open and quirky: Talk about your wins and flops. Kids notice honesty and vulnerability.
2. Make money matters a family habit: Discuss deals, read the financial news (even headlines), and compare purchases.
3. Celebrate progress: Recognising small monetary achievements keeps them motivated.
4. Use digital tools: Money‑management apps for kids, support independence.
5. Encourage healthy financial relationships: Research shows kids taught money well have better adult relationships too.

Poor money knowledge can lead to debt traps, low credit, stress and missed opportunities. But when parents step up for their kids, they empower independence, resilience and future stability. Make your home the classroom where financial literacy becomes a lifelong compass. After all, giving your child money skills is giving them choice, confidence and real-world smartness.

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