Understanding how money works from an early age lays the groundwork for responsible financial behaviour in later life – and the best way to start is with something they can see, hold and count.

In a world increasingly driven by digital transactions, teaching children the value of money could feel like a challenge, but physical money remains a powerful and essential learning tool. In fact, in these squeezed times, many adults have reverted to cash payments to control their household spending – leading by example is always an effective teaching method!

Handling coins helps children grasp that different items cost different amounts and can help them understand that there is a connection between tapping a card to pay and the physical money they can see. Having actual coins also helps improve numeracy skills.

Card and digital payments are undoubtedly convenient, and the existence of debit cards for children can be useful, particularly once children are older and have grasped the basics of spending and saving. But if they see actual money disappearing when they spend it, it’s likely to embed the concept of value in their minds more. Because understanding that, whether money is in your hand or online, it still represents value.

As you know, spending and saving should always be planned and while we like to encourage adults to save for children (that message still stands!), it’s a good idea to get children in the habit of saving for themselves. So, if you currently pay pocket money digitally, why not pay them in cash instead? One of the easiest ways to get children to save for themselves is with a piggy bank. Whether it’s an actual piggy or just a jar or tin of any kind, the important part is to get them in the habit of saving regularly, and to be able to connect the coins they see with the cost of what they want to buy. Watching the pile of coins grow can also be a powerful incentive to keep saving.

We believe financial literacy can begin at an early age. By starting with something as simple as a coin, you’re helping your children develop vital skills – from numeracy and decision-making, to saving and spending wisely. It will help build good financial habits that will support them throughout their lives.