Should You Get Your Kids Involved in the Family Finances?

Money. It’s a topic that causes more family arguments than Monopoly ever could. But here’s a question: should you get your kids involved in the family finances? We’re not saying you should hand over your online banking login to your ten-year-old, but could a little transparency help them understand the value of money (and why you’re not funding their Lego obsession)? Let’s break it down.

Why Bother Involving Kids in Finances?

For starters, kids aren’t born knowing how money works. They’re not going to magically learn about budgets, savings, or why your monthly Netflix bill is an “essential” unless you teach them. Plus, involving them early can help prevent awkward future conversations like, “Mum, why can’t we just print more money?” or “Dad, what’s an overdraft?”

By letting them peek behind the curtain of family finances, you’re teaching them valuable life skills. They’ll learn that things cost money, savings don’t just appear, and no, you’re not made of cash (despite what they think when you whip out a £20 note).

Start Small (And Fun!)

You don’t need to bore them with spreadsheets and mortgage rates just yet. Start with something simple, like pocket money. Give them a set amount, encourage them to save for bigger purchases, and let them experience the sweet agony of deciding between sweets now or a new toy later.

You can even gamify it—set up a “family bank” where they can deposit savings and earn a little interest (even if it’s just chocolate coins). Who doesn’t love a bit of positive reinforcement?

Teenagers: The Budgeting Bootcamp

When your kids hit their teen years, it’s time to step things up. This is the golden age for teaching them about real-world costs. Give them a mini-budget for things like clothes, cinema trips, or takeaways, and watch them realise how quickly money disappears.

If they’re earning their own money from a part-time job, it’s the perfect opportunity to teach them about saving. Show them how a little planning now can lead to big wins later, like finally affording that overpriced festival ticket.

The Big Conversations: Important to Understand

Now, before you start worrying about traumatising your kids, hear us out. Talking about big financial topics like funeral planning isn’t as morbid as it sounds.

Explaining why you’ve set aside money for end-of-life costs (and how it saves them from stress later) is a powerful lesson in being responsible. Plus, it opens the door to discussing other adult financial decisions, like wills, pensions, and why impulse-buying a new car isn’t always the best idea.

What About the Risks?

Of course, there’s a balance to strike. You don’t want to overload your kids with financial worries or make them feel responsible for things they can’t control. The goal is to educate, not stress them out.

Keep the tone light and age-appropriate. It’s okay to share challenges (“We’re saving for a holiday, so we’re cutting back on takeaways”), but avoid anything that feels like a burden.

So, should you get your kids involved in the family finances? Yes, but be sensible about it and don’t make it so that your kids worry unduly about money rather that they understand how it works and how to use it effectively!