How to Raise Money-Smart Kids (Even If You’re Still Figuring It Out)

By Molly Benjamin, Founder of Ladies Finance Club

Listen to the full podcast here.

If you grew up around money stress, and you’ve ever quietly worried, “What if I pass this on to my kids?” this episode is for you.

For our final Get Rich episode of 2025, I sat down with Annette Rose, founder of Kids Get Money, and her story is the kind that makes you go, oh… that’s why I’m like this with money.

Annette grew up below the poverty line on a drought-stricken farm in Western NSW. It was the 80s, the drought was brutal, and money wasn’t just “tight”, it was the emotional weather of the house. Stress, anger, survival mode, all wrapped up in finances. And when you’re a kid in that environment, you don’t get to opt out. You absorb it.

Years later, Annette was earning great money in finance, living in a multimillion-dollar home… and drowning in debt. Not because she didn’t understand money, but because her money mindset was still running the show underneath it all.

And then came her rock bottom moment, in a supermarket, with $20 in her pocket, trying to feed three kids and two adults. Everything looked “successful” from the outside. But it was all being carried by debt.

That moment became the turning point, and it opened up one of the biggest truths in personal finance: you can learn the strategy, but if you don’t understand the story you’re operating from, you’ll keep looping back into the same patterns.

Your childhood money story doesn’t stay in childhood

One of the most powerful parts of this conversation was how clearly Annette explained the connection between early experiences and adult behaviour. As kids, we learn money through what we see and feel, not through spreadsheets. If money was associated with fear, arguments, scarcity or shame, that becomes a baseline. You might grow up and earn more, but your nervous system can still behave like you’re in survival mode.

Annette said she was “hell bent” on making money as an adult, because she never wanted to feel poor again. So she earned well… and spent well. There was also generosity in it, she wanted everyone around her to have all the things too. But if you’re carrying an “I need it now” mindset, or a scarcity belief that things could disappear, spending can become a reflex instead of a choice.

What changed everything for her was a conversation with a coach who kept asking “why” until they reached the root. In about 30 minutes, they traced it back to childhood, and Annette had that lightbulb moment: it wasn’t a knowledge problem. It was a mindset problem.

What to do if you’re in that “supermarket moment” right now

Annette’s advice here was simple, and honestly, so reassuring. First, give yourself empathy. If you’re stressed, avoiding it, ashamed, scared, or overwhelmed, you’re not broken. You’re human. And you can change your situation.

Then she recommends the practical step that unlocks everything: write it all down. Not a perfect budget, not a fancy app, just clarity. Where are you today, exactly? What’s coming in, what’s going out, what do you owe, what do you own?

This is also where she strongly believes support matters. That’s where money coaching can be incredibly helpful, because a coach walks beside you to help you build the foundations, your habits, confidence, and your money management skills. It’s often the step before financial advice, when you’re not ready for products or investment structures yet, you just need stability, direction, and a plan you can actually stick to.

Why this matters for your kids, even if they’re little

Here’s the part I really want you to hear: you don’t need to be perfect with money to raise money-smart kids.

Annette said kids are learning about money from the moment they can understand what you’re saying. They learn from what they see, what they hear, and what they experience. Which means you can start earlier than you think, and you can start in tiny ways.

She gave a few age markers that are useful. Around five, kids are starting to understand coins and notes. Around ten, they start wanting things more consciously, and you can teach needs versus wants. And in the mid-teens, it becomes crucial, because they’re stepping into the real world, getting jobs, wanting cards, and navigating a digital money landscape that includes scams, Afterpay, subscriptions, and invisible spending.

But the biggest takeaway is this: money education isn’t a one-time “talk”. It’s a relationship. And the earlier you make money normal in your house, the easier it is for kids to build real financial literacy as they grow.

The first money concepts kids need aren’t complicated

When kids first start understanding money, Annette keeps it simple: money comes in, money goes out, and it doesn’t last forever. That’s it.

The magic is in linking it to real life. Groceries, petrol, school shoes, the electricity bill, a birthday party present. Those are the moments where you can explain “where money comes from” and “what it’s for” in a way that clicks.

It reminded me of something from my own childhood. My dad used to get so angry at us for leaving the lights on. But what we didn’t understand was: he went to work, he earned the money, and to him, those lights being left on felt like we didn’t appreciate the effort. All we heard was “turn off the lights”. If he’d connected the dots for us, it would have changed everything.

That’s why these little explanations matter.

Pocket money, chores, and building life skills

Pocket money is one of those topics that gets people fired up, and Annette’s take was very realistic: it depends on your family. In her house, there were chores that were just part of being a team. Then there were “extras” that could earn pocket money, like washing the car or vacuuming.

She also shared a clever idea, tying pocket money bonuses to education milestones. Not because kids need bribing, but because it links effort to reward in a healthy way. You could do this with anything that builds skills, but it fits beautifully with her platform Kids Get Money, because it turns financial education into something practical, not theoretical.

How do you teach kids about investing, when it confuses adults?

We talked about investing, and Annette had a great approach: teach it in layers, and make it tangible.

She uses the idea of a “risk ruler”, explaining that some options are lower risk and some are higher risk, and then she brings in compound interest calculators to show how wealth can grow over time. Teens especially love this, because it flips investing from “something rich people do” into “wait… I could actually do this”.

Then she lands the concept in plain English: investing is owning a piece of a company. That framing helps kids understand it without jargon, and it plants the seed of wealth building early.

The biggest mistake parents accidentally pass down

This one was big: scarcity language.

Without even thinking about it, parents say things like “we can’t afford that”, “that’s too expensive”, or “that’s not for us”. Kids soak it up, and those phrases can become lifelong beliefs.

Annette’s point wasn’t that we should pretend money is unlimited. It’s that we can be more conscious about the story we’re teaching. You can still have boundaries and budgets, but in a way that builds agency instead of fear.

Digital money is invisible, so make it visible

This is such a modern parenting challenge. Kids see tap-and-go, subscriptions, Uber, Afterpay, and money can feel like it’s not real because you never see cash.

Annette’s suggestion was simple and brilliant: show them what happens in the bank account. Use small, safe teaching moments. Let them watch you tap the card, then show them the balance changing. It turns invisible spending into something real, and it teaches money management without needing a lecture.

One simple action to start this week

If you do one thing after reading this, make it this:

Start a weekly money chat.

Pick a regular time, keep it short, and talk about money in a calm, normal way. Where it comes from, what it’s for, what you’re saving for, and how you make decisions. The goal isn’t perfection. It’s making money something your kids can talk about without shame.

Because raising money-smart kids isn’t about having all the answers. It’s about creating a home where financial literacy, money mindset, and money management are part of life, not a secret subject everyone avoids.

And if you’re still figuring it out too? You’re not behind. You’re modelling something even more valuable: learning, changing, and building a new story.

Need financial advice? Check out a range of our experts who can help you! 

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