From buying groceries with just a tap to ordering takeaway online, today's children are growing up in a world where money is becoming increasingly invisible.
While digital payments have made life more convenient, they've also changed how children experience money. Unlike previous generations, they rarely see cash changing hands, making it harder to understand that every tap, swipe or click still represents real money.
In How to Raise Rich Kids, finance journalist and mum of three, Sarah Megginson explores how parents can build financially confident kids through everyday habits and conversations. Here are five practical lessons inspired by Sarah's approach to helping children build healthy money habits in a cashless world.
1. Make the money behind the tap visible
One of the strongest messages in How to Raise Rich Kids is that children don't learn about money through one big conversation – they learn through the small, everyday moments.
Sarah shares how her family talks openly about money, from planning a holiday to comparing options at the supermarket. By involving her kids in age-appropriate financial decisions, she helps them understand how money works.
In a cashless world, those conversations become even more important. When you tap your card or phone, explain what’s happening behind the scenes. Instead of simply paying, try saying:
“I’m tapping my card to pay for our groceries. This money comes from the budget we’ve set aside for food this week.”
Making invisible money visible helps children understand that digital payments are still real spending.
💚 Kit Money Lesson: Make money visible. Explain what happens when you tap to pay.
2. How do you teach kids that money isn’t unlimited? Teach that every purchase is a choice
Throughout the book, Sarah reminds parents that every spending decision comes with a trade-off.
One example she shares is planning family holidays. Rather than making decisions behind the scenes, Sarah talks through the options with her children – explaining that staying three nights instead of five means they can also afford to visit a theme park. It's a simple way of showing that every dollar has a job to do.
It's these everyday trade-offs that help children understand money isn't unlimited – every spending decision means making a choice.
Whether it's buying something in a game, ordering online or grabbing a treat at the checkout, involve your child in the decision by asking:
- What are we choosing by buying this?
- Is there something we'd rather save for?
- Will this still feel worth it tomorrow?
Helping children recognise trade-offs builds thoughtful spending habits they'll carry into adulthood.
💚 Kit Money Lesson: Show the trade-off. Talk about what you’re choosing to spend or save.
3. Slow spending down
Sarah often talks about the importance of delayed gratification – learning to save towards something meaningful rather than buying on impulse.
In today's digital world, where purchases can happen with a single click, a small pause can make all the difference.
A family "pause rule" can be as simple as waiting until tomorrow before buying something online or asking whether it's a need or a want.
These pauses show children that money decisions don't need to happen instantly.
💚 Kit Money Lesson: Pause before buying. Try waiting 24 hours before a non-essential purchase.
4. Give children opportunities to practise
A recurring theme throughout the book is that confidence comes through experience.
Sarah encourages parents to give kids opportunities to practise making decisions while the stakes are still small, rather than protecting them from every mistake.
That could look like:
- Earning pocket money
- Saving towards something they've chosen
- Deciding whether to spend or save birthday money
- Reflecting on purchases they've made
Digital tools can help bring those learning moments to life. Whether they’re earning pocket money, setting a savings goal or tracking progress over time, Kit's SMART Goal Tracker, Chore Chart and other free resources help turn everyday conversations into practical learning experiences.
💚 Kit Money Lesson: Let them practise. Give kids small money decisions to make themselves.
5. Bring children into digital spending decisions
In a cashless world, spending can happen almost invisibly.
Streaming subscriptions renew automatically, food can be ordered in a few taps and in-app purchases happen in seconds. Without conversations, children may never see the decision behind the transaction.
Sarah encourages parents to involve children in real financial decisions wherever possible, helping them understand what the family is spending money on and why.
💚 Kit Money Lesson: Talk through digital spending. Explain the real cost behind online purchases and subscriptions.
Next time you're making a digital purchase, bring your child into the conversation.
Ask questions like:
- Why are we choosing this today?
- Was this something we'd planned for?
- What are we choosing not to spend our money on instead?
Helping children understand the decisions behind digital spending turns everyday purchases into valuable learning opportunities.
While the way we spend money has changed, the conversations we have with our kids about money are just as important as ever. As Sarah reminds us throughout How to Raise Rich Kids, it's the small, everyday moments that shape confident money habits for 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.