When (and how) to teach children about finances? - Petra Šparica

Published: 17/10/2025

Petra Šparica, museum educator at Moneterra – Money Museum of the Croatian National Bank, explains when and how to start a conversation with children about money and why it is important to develop financial habits from the earliest age.

Sections:

01:07
Section 1: Why is it considered too early to talk about money with small children and why is this often a taboo topic in the family and society?
In many families, money is a sensitive topic. Parents think that they will burden the child by talking about money or are not sure how to explain money-related terms in the children's language. Sometimes parents are not confident enough in their financial skills and feel that they are not competent to teach their children.
02:50
Section 2: Can this also be due to the fact that parents feel that they are on slippery ground when talking about money because they are struggling with loans, job losses, debts and the like?
Many parents feel insecure when it comes to money, especially if they are burdened with loans and debts or uncertain about their finances. It is only natural then that they avoid talking with their children about it: they fear that they will burden them with worries or show their insecurity.
04:03
Section 3: Early childhood is considered to be an ideal age for adopting values and habits. What basic financial concepts children need to learn at that age?
Early childhood is indeed an ideal age for financial education, but this does not mean that children should be taught complex topics. It is rather that at that age children can be taught some very simple, but fundamental values and habits. The most important thing is to teach children to distinguish between needs and desires. Children can understand at a very early age that, for example, food or school supplies are needs, while a new toy or ice-cream is a wish.
06:00
Section 4: In addition to ability to manage money, which other important life skills are influenced by early financial literacy?
By deciding whether to spend money immediately or save it for something special, children learn that instant gratification is not always the best way and apply good practices. Children best develop this skill between 3 and 5 years of age and it greatly influences their responsible behaviour later in life – not only in the area of finances, but regarding school responsibilities, too.
08:04
Section 5: How do financial literacy concepts change with children’s age?
Financial literacy, just like children, develops gradually and adapts to the age and abilities of the child. The main idea is that financial literacy grows with the child – from simple games and decisions made in early childhood, through specific decisions about personal budgets at the school age to more complex planning and responsibilities in teenage years. Each stage builds on the previous one and prepares children for a healthy relationship with money and future life decisions.
10:45
Section 6: What are the biggest challenges children and young people face when learning about money and how can we prepare them to make responsible decisions?
When it comes to teaching children and young people about money, one of the biggest challenges is their impulsiveness. Children and teenagers often want to immediately have something they see or that their peers have. It is often easier to buy something right away than to wait, even if they know that by saving money they can buy something more valuable. Another challenge is the influence of peers and the media. Teenagers constantly see advertisements, follow influencers or have friends who spend a lot of money, and they want to fit in, which can make learning about planning and saving more difficult.
13:30
Section 7: What children’s educational programmes does Moneterra offer?
Moneterra offers a series of educational programmes for kindergartens and primary and secondary schools. At the end of October, it will mark the World Savings Day by two workshops for children aged 8 to 12.