Talking to children about money

Starting the conversation early can set children up for life, by helping them to develop good financial habits today.

Why it's important

Talking to your children about money can help them develop the skills they need to thrive as adults.

Children often have big dreams about how they’re going to earn a fortune as astronauts, footballers or influencers. By talking about money, you can channel their enthusiasm while giving them a practical perspective.

Benefits of talking about money

Parents often find it tricky talking about money matters. But even if you don’t discuss money, children can still pick up on your responses, such as stress or anxiety.

Research by the Money & Pensions Service has shown that people who talk about money:

  • Make better, less risky financial decisions.
  • Have stronger personal relationships.
  • Help their children form good lifetime money habits.
  • Feel less stressed or anxious and more in control.

*Information correct as of February 2023.

How to start the conversation

A view from Anna Mathur, Psychotherapist, Writer and Speaker.

Anna, shares five ways on how to help your children develop a positive relationship with money, and equip them with the skills they’ll need to make smart financial decisions for the rest of their lives.

5 ways to raise money smart kids

When to talk to children about money

  • It’s never too early to start. Even small children can grasp that if they spend all their money on chocolate, there won’t be anything left for toys.
  • Giving out pocket money lets them learn the value of money, and appreciate that once it’s spent, it’s gone.
  • Secondary school may be beyond piggy banks and playing shops. This may be a great opportunity to talk about planning, spending and earning extra cash for the things they really want.
  • Discuss the decisions you have to make too, for example when trying to budget, saving up for holidays or weighing up bigger purchases.

Related content

Teaching children about money 

Helping young people develop good financial habits from an early age. 

Should I give my child pocket money?

Giving pocket money allows children to learn how to manage their own money.

Choosing a bank account for your child

Children can usually open a Current Account from around the age of 11.

Important legal information

Lloyds Bank plc. Registered office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales No. 2065. Lloyds Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278.

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