A national awareness initiative aimed at helping children aged 3 to 29 get excited about, and engaged with, financial matters, My Money Week 2025 runs from 19-24 June 2025.
It’s the perfect opportunity to get the young people in your life a little more clued up about all things financial. It can help them understand the basics through to the more complex, depending on their age.
We know you’re engaged with the world of finance – you work with us, after all. But now’s a great time to pass some of that knowledge on to your children and grandchildren.
Younger generations need financial awareness to manage their inherited wealth
It’s important to equip young people with practical life skills. With Vanguard reporting that £7 trillion in wealth is expected to pass through UK generations by 2050, financial awareness should be a priority for younger generations.
Known as the “great wealth transfer”, this shift of assets is likely to be the largest intergenerational transfer of wealth in history.
Here are seven simple lessons you can pass on to your children and grandchildren to help them manage their future wealth.
1. Learning about money (age 3 and up)
At this age, children are learning all the time and have a natural curiosity and aptitude. There are lots of opportunities for talking about money in their everyday lives.
For example, when you’re out shopping, you might compare the prices of items and demonstrate that some things are more expensive than others.
Talk to them about how to keep their money safe – you could buy them a money box or piggybank for their coins.
Children also love to play “shops”. Treat them to a play cash register with some fake coins or help them make their own.
2. Talking about saving (age 5 and up)
This is a good time to start talking about savings. Ask your little one to think of something they’d like to save for (realistically!) and then set simple goals, such as a loose time frame.
This will give them a good incentive to watch their savings pot grow. You could give them some weekly pocket money and top this up with little “rewards”, for tidying their room, say. Make sure they put their savings in their money box and count it together each week.
If you don’t want them keeping a lot of money, you could add it to a bank account and show them the balance as it builds.
3. Making decisions (age 7 and up)
University of Cambridge research, published by the Guardian, confirms that by age seven, children are capable of grasping the concept of money. The findings also show that children at this age can grasp the notion of delayed gratification, as well as understand that some decisions are irreversible.
Give them independence. If they want to buy something, they need to save for it and won’t be able to buy anything else for a little while.
Talk to them about the difference between wants and needs. For example, a new pencil case for school versus a toy or game.
Now might be a good time to introduce them to online buying – strictly under your supervision, of course! Explain that this is just the same as spending their money in shops, and they need to keep a careful eye on how much things cost.
4. Borrowing and budgeting (age 9 and up)
From this age upwards, you can start to discuss borrowing and budgeting. Your child can think about the things they want to spend their money on and how to make this happen.
For example, looking in charity shops and buying things second-hand will help to make their money go further. You could also explain the concept of borrowing and how they’ll have to pay back more in interest, encouraging them to develop a mentality of saving above borrowing.
5. Managing their mobiles (age 12 and up)
By now, they’ll either have a mobile phone or be asking you for one! This is a good time to talk to them about responsible use of finances.
Set them credit and data limits, which you expect them to stick to, and encourage them to monitor and manage their allowances.
6. Learning their boundaries (the teenage years)
Many teens want to be in full control of their finances. But if they overspend, it’s important they know you won’t always bail them out, so you need to stand firm.
Your teenager might take a Saturday job to earn their own money. This will help them learn about income and managing the spend/save balance.
Now is also the time to have a frank chat about their future. What are they planning to do once they finish further education? If they’re thinking about university, do they understand the financial implications? There will be tuition fees to consider, as well as maintenance grants, and they’ll likely graduate with significant debts to pay off.
7. Understanding pensions, mortgages, and credit cards (age 19 and up)
At the start of their journey into adulthood, there’ll be a lot to think about. It’s a good idea to introduce the concept of saving into a pension, even if they aren’t in full-time work yet. You could also discuss mortgages and credit cards, which are likely to crop up in the not-too-distant future.
You don’t need to give them chapter and verse, as you don’t want to risk overwhelm. But let them know you’ll be around to talk anything through. And if there’s anything you can’t answer yourself, you know that we’re always on hand to help!
Get in touch
If you’re looking for an independent financial adviser in Milton Keynes or Olney, look no further. At Jane Smith Financial Planning, we’ve been helping clients for 30 years, so contact us at info@janesmithfinancial.com or call 01234 713131 to see what we can do for you.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
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