Teach older children about money

Prepare for the future

It’s a big step for children starting secondary school. They’ll want to be more independent and will start thinking about their future. We have three key things you can help them to think about.

Lessons and tips for 11 to 13 year olds

1. Working and earning

Encourage your kids to start thinking ahead. Get them to think about what kind of job they would like to do in the future. What are their dreams? They may want a big house, a flash car or to travel the world. Whatever their dreams, it’s good to dream big and plan when you’re young.

Earn cash for jobs – encourage your child to do some jobs around the house. You could offer different ‘rates of pay’ for different jobs. For example, washing the car or cutting the grass.
Think about the future – when they leave school, what do they see themselves doing? What sort of job are they interested in and how much does it tend to pay.

2. Borrowing money

Sometimes there is no other option than to borrow money. Maybe money for a new car, or a mortgage for a house. Help your children understand borrowing so they can manage any debts they have in the future.

Types of borrowing – credit cards, loans, mortgages and overdrafts. These are all types of borrowing but will have different terms to repay the debt.
Reasons to borrow – think back to the ‘wants’ and ‘needs’ before you borrow money.
Can you afford the repayments – it costs more than you think to borrow money.
Borrowing money may be the only option – for example, a mortgage or car loan.
If you can’t pay the money back – the consequences will depend on the type of debt you have.

3. Understanding finance

There are lots of different types of financial products that you may need to use as an adult. From around 11 to 13, your child will start learning about financial products. We have some tips to help guide the conversations you can have with them to support their learning.

There are benefits and risks with products like insurance or loans.

Select products to meet your needs.

Look at the different types of financial products available. For example, current or savings accounts, mortgages, car insurance or even mobile phone contracts. Understanding these financial products will help them learn about finance.

Working out a budget for saving and spending will help them to make good financial decisions.

Lessons and tips for 14 to 16 year olds

Between 14 and 16, your kids are becoming more independent. It’s good to know they have some money in an account, but also good to know that they can make good financial decisions.

1. Budgeting

This is an important life skill, which will set your kids up on the road to financial independence.

Encourage them to budget their money. If they keep an eye on what they spend, they may be able to put some money aside for savings. Having responsibility for their own expenses is a great way to learn and understand the value of money.

2. Protect yourselves from fraud

Make sure your kids know how to spot a fraud scam. They can be easy targets if they are on social media or shopping online.

If they think they've been scammed, they should contact us immediately.

Make sure they use strong passwords and keep their personal and banking details private.

3. Work and taxes

From 13, teenagers can get a part-time job. There are rules about when they can work and what they can to do. You can find more information on this on the government website.

Help them look for a part-time job. They’ll be able to earn their own money and build their confidence and independence. Help them to write a CV and draft a covering letter to go with it. If they can’t find paid work, you could encourage them to do some volunteer work. It won’t be paid, but it will give them experience while they look for a paid job.

When they are 18, they may be able to claim benefits from the government if they don’t have a job or can't work. Talk about what these are and how they can check if they’re eligible.

Once they have their own money, encourage your kids to be smart with their money. Get them to budget and put 50% aside for their essentials, save 30% and enjoy the rest.

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