Teaching kids about money and investing can feel like a big task, but it's one of the most valuable lessons you can share. Financial literacy equips children to understand money, plan for the future, and even grow wealth.
Here’s how Ana and Nick approach it with their own kids, alongside insights from Tash’s upbringing, where her family emphasised financial lessons in everyday life. These practical and easy strategies can help you introduce kids to finance in a fun, family-centred way.
Start by setting a family example
One of the easiest ways to begin is to simply talk about money openly at home. Many parents aren’t sure where to start, but everyday conversations about budgeting, saving, and spending can lay the foundation.
Tash recalls how her own parents discussed things like salaries, pay raises, and even mortgage payments around her, giving her a practical sense of how money impacts family life.
Nick’s kids, who hear him talk about investing all the time as the co-founder of Pearler, have picked up on financial concepts just by being around him.
“They’ve learned a lot by osmosis,” he shares.
While he hasn’t sat them down for formal lessons, his kids have already begun to understand the basics of investing simply by observing him in action.
Birthday money and allowances: making it real for kids
Kids grasp money best when they have their own experience with it, and birthdays are a great way to introduce them to saving and investing. Ana has invested her kids’ birthday money through a separate Pearler account, set up just for them. She envisions this fund growing over the years so she can pass it on when they reach an important milestone, like buying their first home .
Tash recalls getting an allowance as a kid, which helped her learn budgeting and saving . She was competitive about it too, wanting to save more than her sister.
Nick, however, doesn’t tie his kids’ chores to money. He’s more focused on rewarding good behaviour, such as showing kindness or taking responsibility. This is so they associate money with adding value to the family, rather than just doing the job.
Use real-world examples to explain investing
One way to help kids connect with investing is by using brands and companies they already love. Ana suggests introducing kids to the idea that they can “own a piece” of companies like Disney or McDonald's. Kids naturally find it exciting when they realise they can actually invest in the things they enjoy.
“A great way to talk to your kids about money is actually find out what they love,” she says.
“If they're into Disney, if they're into Apple, if they're into McDonald's, actually talking to them about being able to own a piece of that company, that's a really great way to get them thinking: 'I could own that company'. They can then feel empowered because they are an owner.”
This approach makes the idea of investing much more tangible.
For Tash, the concept hit home when she learned as a child that her family owned shares in Woolworths. The family only shopped there, and Tash quickly picked up on the connection between supporting Woolworths and the family’s finances. This simple principle – invest in what you know – can help kids understand how their own lives tie into investing decisions.
Teach money management with achievable goals
Kids can thrive with goals, and money management is no different. Ana’s kids are still young, so she plays simple maths games to help them start thinking about numbers. For example, her child loves to play maths by adding and subtracting small amounts. It might seem straightforward, but these early interactions with numbers set the stage for budgeting and saving.
Nick’s family uses a sticker rewards system. The kids earn stickers for behaviours that help the family, and after collecting eight stickers, they can turn them in for an $8 reward. This approach teaches them to work toward a goal, save, and understand the value of “earning” through actions, which is essential for managing money in the real world.
Encourage value creation
One crucial lesson Ana wants to pass on is that money isn’t just earned; it’s created through adding value. Instead of just giving her kids money for chores, she encourages them to go above and beyond, helping around the house or coming up with creative ideas. These “value-creating” actions are rewarded in ways that reflect the idea that people get paid for more than just checking boxes.
Ana shares memories from her own childhood, selling friendship bracelets or watching her neighbours host a garage sale, which helped her understand the basics of entrepreneurship and independence. She encourages parents to support these little entrepreneurial ventures so kids feel empowered and proud of the money they earn.
Make investing exciting with stocks and ETFs
When kids are ready to understand investing, starting with simple choices makes it easy. Nick suggests beginning with a broad ETF , like one covering the top 200 companies in Australia, because it’s diversified and potentially safer than individual stocks. This choice also allows kids to understand that they can invest in “all” the companies they see around them, making it feel like they’re part of the entire economy.
On the other hand, Ana mentions starting with individual shares that kids recognise. “Everyone loves Elsa,” she jokes, referring again to her kids’ fascination with Disney's Frozen character.
Let kids make small financial mistakes
One of the best ways to teach kids is to let them experience small consequences. Recently, Nick’s son asked if he could upgrade his favourite game from the free to the premium version, which costs $8 per month.
While Nick’s instinct was to say no, he’s considering letting his son use his own birthday money to buy the upgrade, hoping he’ll eventually realise it wasn’t worth it. Nick explains: “It’s a high risk-reward play… I don’t know if I have it in me to allow the mistake.”
But even though Nick is hesitant, this approach could help his son learn to weigh purchases carefully. Letting kids make small financial choices (and mistakes) allows them to experience the realities of budgeting and spending.
Keep it simple and flexible
Every family’s approach to money is unique, and there’s no “perfect” way to teach kids about it. Nick prefers a simplified, all-in-one investing approach, while Ana keeps a separate account for her kids. Both agree that keeping it simple and adaptable is crucial, especially in the early years when kids are just learning the basics.
Nick encourages parents to start small. A single ETF or a well-loved stock can introduce kids to the idea of investing without overwhelming them.
The final goal: building a foundation for Financial Independence
Teaching kids about money and investing isn’t just about numbers or accounts. It’s about setting them up for a future where they understand and respect the value of money. From small lessons like saving birthday money to bigger concepts like value creation, these ideas are the building blocks of financial literacy.
With every real-world example and open conversation, you’re helping your kids grow into confident, responsible adults ready to handle their finances and make smart choices for a lifetime.
If this episode sparked something in you, give it a five-star rating, drop a review, or better yet, share it with a friend. And if you're just starting out, the first ten episodes will get the financial gears turning. Follow us at @getrichslowclub and catch our personal updates at @tashinvest or @anakresina.
Happy investing!
