Teaching Kids About Money: An Age-by-Age Guide for Aussie Parents

Short Answer

Start early, keep it real, and let them make small mistakes.

Kids learn about money the same way they learn to walk — by doing it. Your job isn't to lecture them; it's to give them age-appropriate opportunities to earn, save, spend, and sometimes mess up.

Here's a stage-by-stage guide to raising money-smart kids, with real numbers and practical tips from an Aussie mum who happens to be a CPA.

Ages 3–5: Money Is a Thing You Swap for Stuff

At this age, money is abstract. Kids see you tap a card and walk out with groceries — it looks like magic.

What to do:

• Use cash sometimes. Let them hand coins to the checkout person. It makes the exchange real.
• Play shop at home. Give them some coins, price a few toys, and let them "buy" and "sell."
• Introduce the three jars. Get three clear jars and label them Save, Spend, and Share. When they get a coin, they choose which jar it goes into. They won't fully get it yet — that's fine. You're building the framework.

Key message: Money is limited. You trade it for things you want.

Ages 6–8: Pocket Money Begins

This is the sweet spot for starting regular pocket money. Kids can count, they understand "more" and "less," and they're old enough to feel the sting of spending it all.

What to do:

• Start small. $5–$8 a week is plenty. The amount matters less than the habit.
• Use the three jars properly. Every payday: some to Spend, some to Save, some to Share. You decide the split, or let them — either way, they learn allocation.
• Set a savings goal. "You want that Lego set? It costs $40. If you put $5 a week into your Save jar, that's 8 weeks." Draw a progress chart on the fridge.
• Don't bail them out. If they blow their Spend money on a cheap toy that breaks in a day, let that lesson sink in. Better now than later.

Key message: You can't have everything. Saving takes time, but it works.

Ages 9–12: Real-World Money Decisions

By now, kids want things — brand-name shoes, gaming subscriptions, the cool water bottle everyone has. This is where the money conversations get interesting.

What to do:

• Introduce a "wants" budget. Give them a monthly amount (say, $30) for non-essential clothes or toys. They decide what to buy. If they want a $90 hoodie, they save for three months. Real-life budgeting, kid-sized.
• Talk about advertising. Show them an ad and ask: "What are they trying to make you feel?" The critical thinking muscle is the best defence against impulse spending.
• Open a youth bank account. Westpac's Choice Youth, CommBank's Smart Access for Youth, and other banks offer fee-free accounts from age 9–12 with parental oversight. Let them deposit pocket money and watch the balance grow.
• Explain interest — both ways. Saving interest (free money!) vs. borrowing interest (expensive money). A simple table helps:

Key message: Every spending decision is a trade-off. And compound interest is your best friend.

Ages 13–15: Earning and Managing Their Own Money

Teenagers want independence, and money is a great place to give it to them — with guardrails.

What to do:

• Encourage earning. Babysitting, dog walking, tutoring younger kids, or odd jobs for neighbours. It doesn't need to be a formal job — the goal is connecting effort with income.
• Introduce a prepaid card. Services like Spriggy or Kit (built by CommBank) let teens spend their own money with parental visibility. Real debit card experience, no risk of overdraft.
• Teach the 50/30/20 rule early.
  • 50% for needs (school lunches, transport)
  • 30% for wants
  • 20% for saving
• Let them plan a family meal. Give them a $40 budget, go to the supermarket together, and have them plan and buy dinner. Quick lesson in trade-offs: steak or dessert?

Key message: Money comes from effort. Budgeting isn't restrictive — it gives you permission to spend on what you actually care about.

Ages 16–18: Practising Adulthood

The runway is getting short. By 18, they could have a part-time job, a tax file number, and a super account. Your role shifts from teacher to coach.

What to do:

• Help them get a TFN. It's free on the ATO website and takes 10 minutes. They'll need it for any job.
• Explain tax — just the basics. "If you earn under $18,200 a year, you probably pay no tax. If you earn more, your employer takes tax out before you get paid, and you might get some back at tax time." That's enough for now.
• Talk about super. When they start a job, their employer pays 12% of their wage into super. It's not optional — it's automatic wealth-building. Show them their first super statement. "This money is yours. It's growing. You'll thank yourself in 40 years."
• Introduce a "future fund." Whether it's a car, a gap year, or moving out — have them set a big savings goal and work toward it. Watching several thousand dollars accumulate from their own effort is something no textbook can teach.

Key message: Adult money isn't complicated. Earn, save some, spend the rest on purpose. And never ignore your super.

What NOT to Do

A few things I've learned — partly from my CPA training, mostly from getting it wrong with my own kids:

• Don't make money a secret. If you're budgeting or cutting back, say so. "We're eating at home more so we can save for our trip." Kids learn more from watching you than from anything you tell them.
• Don't use money as punishment or reward for behaviour. Pocket money is for learning money skills, not for good grades or a clean room (those are separate conversations).
• Don't stress about doing it perfectly. A kid who gets pocket money inconsistently and messes up 50 times is still miles ahead of a kid who never had to think about money at all.

The best financial education isn't a lecture. It's letting your kids handle real money, make real decisions, and feel real consequences — while the stakes are still low.

That's it. Start this week. Three jars, a few coins, and a conversation. You've got this.