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Teaching kids about money

If you've ever heard your child say, "Can we buy it?" five seconds after walking into a shop, you're not alone.

Children have an incredible talent for spotting the most expensive item on the shelf while somehow developing temporary hearing loss when you say, "We already have one at home."

The truth is, children aren't born understanding money. They don't instinctively know that electricity isn't free, groceries don't magically appear in the fridge, or that someone has to pay for the Wi-Fi they insist is "essential for homework" (even if YouTube seems to be getting most of the attention).

Financial education starts long before their first bank account or first pay cheque. It begins with everyday conversations at home. You don't need spreadsheets, lectures or complicated financial jargon to teach children about money. Some of the best lessons happen naturally.

For example, give younger children a small allowance and encourage them to divide it into three jars: a Spend, Save and Share jar. They'll quickly learn that buying a new toy today might mean waiting longer for something even bigger tomorrow.

When grocery shopping, involve them in comparing prices or choosing between brands. Challenge them to help stick to a shopping budget or plan meals using what's already in the cupboard. They may even discover that "specials" can be just as exciting as sweets.

For older children and teenagers, involve them in bigger financial conversations. Explain why the family has a budget, how saving for holidays works, or why paying off debt is just as important as buying new things.

Most importantly, let them see that money requires choices. Because one day they'll be making those choices for themselves. Children don't simply listen to what we say about money - they watch what we do.

If they see us planning ahead, saving consistently, avoiding unnecessary debt and making thoughtful financial decisions, they're learning valuable habits without us even realising it.

Likewise, if every swipe of a bank card appears to produce endless shopping bags, it's easy for children to believe money is limitless. Being honest about finances - helps children understand that earning, spending and saving all work together. The goal isn't to raise children who are afraid of money. It's to raise adults who know how to manage it confidently.

The Greatest Gift Isn't Always Money

Many parents dream of leaving an inheritance for their children. A paid-off home. An investment portfolio. Savings to help with university or buying a first home. These are wonderful goals.

But perhaps the greatest financial legacy isn't what you leave behind—it's preparing your children to manage whatever they receive. Of course, teaching children about money is only one part of securing your family's future.

Life has a way of reminding us that even the best plans can be interrupted. An illness. An accident. The loss of an income. Unexpected events don't just affect bank balances—they affect families, opportunities and dreams.

That's why insurance should never be viewed as "just another monthly expense."

While no one enjoys thinking about life cover, disability cover or income protection, these plans exist for one simple reason: so that if life takes an unexpected turn, your family's future doesn't have to. The education you've planned for can continue. The home you've worked so hard to build can remain secure. Daily expenses can still be met.

Most importantly, your loved ones can focus on healing and supporting one another rather than worrying about financial uncertainty.

At 1.618, we believe that wealth isn't simply measured by numbers on a statement. It's measured by the confidence you pass on, the opportunities you create and the security you leave behind.

So this month, consider having a family money conversation around the dinner table. Talk about saving and goals. Teach your children that money is a tool - not the destination. And while you're planning their future, take a moment to review your own financial protection.

Because the greatest legacy isn't simply leaving something behind. It's knowing you've done everything you can to protect the people who matter most.