Teaching Kids About Money: Coins, Counting and Saving

Money skills are life skills. Children who learn to count coins, save, spend wisely and wait for things they want grow into more confident adults. You don't need to wait until they're older. Money lessons can start in preschool and grow with your child. Here's an age-by-age guide.

Ages 3–5: What money is

• Coins and notes. Look at coins together. Talk about their names, colors and sizes.
• Sorting coins. Sort coins by type (and watch for choking hazards with little ones).
• Play shop. Use toy food and price tags. Children "buy" items with coins.
• Money buys things. "We need money to buy groceries. Grown-ups earn money by working."
• Waiting. "We can't buy that today, but we can save for it."
• Piggy bank. Let them drop coins in a clear jar so they can see it grow.

Ages 5–7: Counting money

• Coin values. Learn what each coin is worth.
• Counting coins. Start with one type of coin, then mix them. Our money worksheets cover US and UK coins.
• Making amounts. "How many ways can you make 10 cents?"
• Shopping practice. Let children pay at the shop with your help.
• Needs and wants. Sort pictures into things we need (food, home, clothes) and things we want (toys, sweets).
• Saving goals. Choose a small item to save for and track progress on a chart.

Ages 7–9: Spending and saving

• Pocket money. Many families start a small regular allowance around this age. See chore charts for ideas on linking money to extra jobs.
• Save, spend, share jars. Split money into three jars: saving for later, spending now and giving to others.
• Giving change. Practise working out change. It's real-life subtraction.
• Comparing prices. Which is better value: one big pack or two small ones?
• Budget for a treat. Give a set amount for a day out and let them choose how to spend it.
• Making mistakes. Spending all their money on something that breaks is a valuable lesson.

Ages 9–12: Planning and earning

• Budgeting. Plan spending for a week or a month.
• Bank accounts. Open a children's savings account and talk about interest.
• Earning. Lemonade stands, car washes or selling crafts. See our summer bucket list.
• Advertising. Talk about how ads try to make us want things.
• Online spending. Discuss in-app purchases and online shopping.
• Percentages and discounts. "It's 20% off. How much will it cost?"

Money games

1. Play shop with real or play coins.
2. Coin toss. Toss coins and add up the total.
3. Race to a dollar (or pound). Roll a dice and collect that many cents; trade up for bigger coins.
4. Board games with money, like Monopoly Junior.
5. Restaurant play. Make menus with prices and let children add up the bill.
6. Grocery challenge. Give a budget and a shopping list. Can they stay within budget?
7. Coin rubbing. Put coins under paper and rub with a crayon to see the details.

Talking about money

• Be open. Talk about how you budget and save (in an age-appropriate way).
• Model good habits. Children notice how you shop and spend.
• Avoid money anxiety. Keep conversations calm and practical.
• Praise saving. "You waited and saved. That's great!"

Common mistakes to avoid

• Bailing them out every time. Small mistakes are cheap lessons.
• Only talking about money when it's a problem. Make it a normal topic.
• Starting too late. Simple lessons can begin in preschool.

Frequently asked questions

When should kids get pocket money?

Many families start between ages 5 and 8. It's more about readiness than age.

How much pocket money should kids get?

It varies. Some families use their child's age as a guide (like 50p or $1 a week per year of age). Choose an amount that fits your family.

How do I teach kids the value of money?

Let them save for things they want, pay at shops, make choices with a set budget and talk about how money is earned.

Save, spend, share jars

1. Get three clear jars and label them Save, Spend and Share.
2. Decorate each jar with drawings or stickers.
3. Decide on a split for pocket money, like half to Save, a third to Spend and the rest to Share.
4. Set a goal for the Save jar. Draw a picture of it and stick it on the jar.
5. Choose a cause for the Share jar, like an animal charity or a food bank.
6. Review every month: count each jar together and talk about progress.

What's the best age to open a savings account?

Many banks offer children's accounts. Children aged 7 and up often enjoy seeing their money grow, especially if you show them the interest.

How do I teach kids about digital money?

Explain that cards and phones still use real money from an account. Show them a receipt or a bank statement in an age-appropriate way.