Learning how to manage money early can set young people up for life, say financial experts
With the long summer holidays fast approaching, finance experts are urging parents to use the break as an opportunity to teach children valuable money skills that could benefit them well into adulthood.
According to leading financial voices ahead of My Money Week (9–13 June), summer presents the ideal chance to introduce children to concepts such as budgeting, saving, and sensible spending in a relaxed and engaging way.
Chris Henderson, Save and Pay Director at Tesco Bank, said, “It’s so important to teach children about money and how to manage it from a young age. The skills and knowledge we gain early on can significantly impact our financial wellbeing throughout life.”
Mr Henderson recommends turning everyday situations into teachable moments. “Whether it’s a quick trip to pick up ingredients for dinner or planning a family day out, let your children take charge of the budget,” he said. “You could even set them a challenge to plan an affordable day out. It makes budgeting feel more like a fun game than a chore.”
In an increasingly cashless society, where most transactions happen digitally, he also emphasised the importance of showing children what money looks like in a bank account. “Let them see when you’re paid and what expenses go out – things like rent, electricity or council tax. It’s important they understand that money isn’t just for spending.”
He added that creating a simple “wishlist” with items they want can help children appreciate saving. “Ask them to work out how long it would take to afford something they want and how they could save faster. They’ll not only learn to save but will value their purchases more.”
Brian Byrnes, Head of Personal Finance at Moneybox, echoed this, suggesting that parents might also consider opening a Junior ISA. “A Junior ISA allows you to put money aside tax-free for your child’s future. When they turn 18, it automatically converts into an adult ISA, giving them control over how to use or invest the money.”
While some parents may worry their teenager might spend the money unwisely once they reach adulthood, Mr Byrnes suggests a balanced approach. “You could split your savings – placing some into a Junior ISA and keeping the rest in a different account earmarked for their future needs, such as university or a first car.”
He also urged parents to have open and honest conversations about finances. “Talking about any money you’ve saved for them not only includes them in the process but also helps them learn about investing and long-term financial planning.”
Susan Hope, Retirement Expert at Scottish Widows, pointed to recent research revealing that 44% of adults feel they may never achieve financial independence—often due to a lack of confidence in everyday money matters. She said this underlines the importance of financial education from a young age.
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“Go through a payslip with them to explain tax, national insurance, and pension contributions,” she suggested. “Let your children watch how you budget, compare prices, or decide between activities based on cost. These are practical, real-life lessons they’ll use forever.”
Ms Hope said it’s also crucial to introduce teenagers to the concept of pensions before they enter full-time work. “The earlier they engage, the more they can benefit in the long term. A pension might sound dull to a teenager, but understanding how it works can make all the difference later in life.”
As families gear up for the summer, the message from financial experts is clear: don’t wait for adulthood to teach children about money. Start early, make it practical, and weave it into everyday life. With the right approach, the summer break can be not only fun but financially formative too.
