Kids ask big questions, “Why can’t we buy everything?”, “Can I have that?” & “What’s a savings account?”, and as it turns out, these questions matter more than we think.
According to Ecstra Foundation’s national 2025 survey of teachers, parents and students, 93% of parents and 95% of teachers agree it’s important for kids to learn about money early, and 73% of teachers say it’s more important than ever because of rising financial complexity. [Source: Talk Money]
And here’s the kicker: while 98% of Aussie kids are already spending or managing money, nearly 37% say they have low or no knowledge about basic finance concepts. [Source: The Educator Online]
So yes, kids are using money long before they properly understand it.
Why early money conversations matter
Research shows that teaching kids financial skills early leads to:
- Better financial decisions as adults
- Higher confidence in managing money
- Improved long‑term wellbeing and resilience
- Lower risk of financial stress later in life
Studies even show that strong financial literacy in childhood can reduce financial hardship and improve future health outcomes. [Source: Kids Get Money]
The bottom line? Talking about money at home is powerful.
Fun ways to start “money talks” with your kids
Here are easy, everyday ways to build money confidence:
The Three‑Jar Method: Kids learn incredibly fast when they can see their money grow. Try splitting pocket money into Spend, Save, and Share jars, a method recommended in multiple Aussie financial literacy guides and also included in a Little Star Saver.
Let them set a mini goal: Saving for a toy, a game, or an outing teaches patience, planning, and the joy of achieving something they worked for.
Involve them at the shops:Pointing out prices and comparing options builds real‑world understanding and it works even for 5‑year‑olds.
Open their first savings account: Kids LOVE having something that feels “grown‑up,” and it’s a perfect way to introduce positive money habits early.
Is it time to meet our Little Star Saver? Our Little Star Saver account is designed to help kids learn the value of saving in a fun, real‑life way.
With no account‑keeping fees and engaging features, it helps kids build great habits while parents stay in control.