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When it comes to raising money-smart kids, author and finance journalist Sarah Megginson is leading by example. As a mum of three – aged 15, 12 and 9 – she’s helping her children build practical earning, saving, and spending skills that will last a lifetime.
Kit’s MD Yish Koh sat down with Sarah to talk about how she’s turning everyday moments into money lessons, from her teen’s first job to her youngest’s first investment chat.
Building independence through earning and saving
My eldest daughter, 15, started her first job at a bakery just after she turned 14. She works one or two shifts a week and loves the independence that comes with earning her own money.
Her big splurge is concerts. She’s passionate about music and loves buying records and going to gigs. We used to pay for them, but as her interest grew, we agreed she would need to budget for them herself. Now, she sets aside around $50 a month for fun and saves the rest toward her bigger goals.
As she gets closer to getting her licence, we made a plan together – for every dollar she saves, we’ll match it. She opened her own savings account and started with $400 straight away. Her goal is between $7,000 and $10,000, which includes the cost of insurance and registration. I’ve told my kids, “You can’t afford a car unless you can afford insurance.”
Learning from choices (and mistakes)
My middle child, 12, used to love spending money. She’s learning through experience that sometimes spending everything doesn’t feel great the next day. I remind her that choices aren’t good or bad, but we can learn from them.
She’s now a little more mindful, especially because we’ve recently started our laptop contract with her. We did it with her big sister, too; when she started high school, she needed a laptop, but she wanted a MacBook. We agreed to pay for it upfront and we paid the first $600, and she agreed to repay $750 over two years at $30 a month.
We even made a small contract, agreeing that if she fell behind, the laptop would be for school use only. She’s never missed a payment, and it’s given her a real sense of pride and discipline.
Everyday money lessons at home
My youngest, 9, is our natural saver. He’s very competitive and loves beating his big sisters for pocket money, which they earn as “points” according to how many chores they’ve done around the house. He’s currently saved about $400 and is constantly looking for ways to earn more. He’s learned a lot from watching his sisters.
We often chat about money as a family, whether it’s planning holidays, comparing deals online, or deciding how to save for something special. Recently my son asked, “How do I get rich?” That led to a great conversation about investing and risk. We used his favourite takeaway, Guzman y Gomez, as an example to show that you can actually own shares in companies you love. It’s amazing how engaged kids become when you make money conversations relatable.
We also keep earning fun with a points-for-chores system:
- Each job earns points worth ten cents
- 20 points = Dishwasher, 15 = Hanging out washing, 10 = Feeding the dog
- Every second Sunday is payday, when the kids choose how to use their earnings
Talking about money openly
I grew up in a family that lived pay-to-pay, where money wasn’t really discussed. That’s why I make it part of everyday life now. My kids know what our bills cost and how we budget for holidays.
I’m mindful of the words I use. Instead of “We can’t afford that,” I’ll say, “That’s not in our budget right now” – even if the truth is, we can’t afford it. That small language shift can help them feel financially secure and not see that money is about choices, not shame or scarcity.
Practical advice for parents on raising money-smart kids
Sarah’s advice for parents who want to help their kids build confidence with money:
- Start saving small. Even a couple of dollars a week teaches the habit of saving.
- Stay consistent. Regular conversations matter more than perfect systems.
- Be open. Let kids see how money decisions happen in real life.
Sarah Megginson is a personal finance expert, editor and media spokesperson with over 20 years of experience writing about property and money. She’s passionate about making finance accessible and empowering families to build strong money habits. Sarah is the Head of Editorial at Finder and a regular commentator on TV, radio, and in print, appearing in the media over 1,000 times a year.