When Sarah Megginson talks about raising “rich kids” in her new book, How to Raise Rich Kids, she’s not talking about luxury holidays or trust funds.
The finance expert, mum of three and author believes real wealth is about helping kids build confidence, freedom and healthy money habits early – starting much sooner than most parents realise.
Packed with practical, real-world advice and relatable family examples, the book encourages parents to rethink the way they talk about money at home. The goal is to help kids build healthy habits around money from an early age, so they grow up with financial confidence.
“Kids absorb everything,” she writes. “They pick up our habits, our anxieties, our beliefs and our behaviours around money.”
The good news? Parents don’t need to be finance experts to start building healthy money habits at home. Here are some practical, age-appropriate tips inspired by the book that families can start using today.
Age 5–7: Start Small
For younger kids, Sarah says money lessons are less about dollars and more about habits. At this age, the focus is on helping kids:
- Practise patience
- Understand “needs” vs. “wants”
- Connect effort and reward
- Start building healthy money habits
One of the book’s biggest tips is to watch out for “money leaks”, which are those small everyday purchases that can quickly add up. They might look like:
- Buying a toy every shopping trip
- Constant treats while out
- Impulse purchases to avoid meltdowns
Instead, Sarah encourages parents to help kids practise waiting before buying something.
One simple phrase she suggests you can use with younger kids:
“Not now, but soon – we’re making room!”
Other suggestions include:
- Involving kids in simple chores, like grocery shopping, so they start to attach value
- Using visual savings trackers – like Kit’s free SMART Goal Tracker, available on Kit’s Learn Hub, designed to help kids visualise progress towards a goal
- Helping kids save towards something special
- Celebrating patience and saving, not just spending
When it comes to money conversations at home, small language shifts can make a difference. Instead of saying “We can’t afford that”, try “We’re not choosing that right now” or “That’s not in our plan at the moment”. The goal isn’t perfection, it’s helping kids slowly connect money with choices.
Age 8–10: Make Money Conversations Normal
As kids grow older, money conversations can become part of everyday life. That doesn’t mean formal lessons or budgeting spreadsheets. Instead, it can look like:
- Comparing prices at the supermarket
- Talking about saving for holidays
- Setting savings goals together
- Discussing wants vs. needs
One of the mantras Sarah’s family uses is:
“Speed to your needs and wait for your wants.”
Families can also explore Kit’s free Smart Money Playbook for conversation starters, activities and practical ways to build healthy money habits together.
At this age, kids are also starting to become more independent with spending, so families can:
- Let kids make small money decisions
- Help them save towards goals
- Talk through spending choices together
- Allow room for small mistakes and learning moments
Rather than labelling spending as “good” or “bad”, the book encourages helping kids think through their decisions and learn from the outcomes.
Age 8–10: Make Money Conversations Normal
This age group is growing up in a completely different money world from previous generations. Today’s kids are surrounded by:
- Tap-and-go spending
- In-app purchases
- Influencers
- Online shopping
- Endless ads and trends online
In other words, money has become much more invisible. That’s why it’s important to help kids connect the dots between digital spending and real-world value. Sarah encourages parents to openly talk about:
- Online trends
- Impulse spending
- Social media ads
- Scams and fake offers – families can also use tools like Kit’s free Scam Spotter Checklist to help kids recognise online scams
- How online content influences what we buy
This can also be a great age to introduce:
- Budgeting basics
- Savings accounts
- Beginner investing concepts
- Understanding how cards and digital payments work
Rather than avoiding these conversations, families should lean into them. The focus is all about helping them feel confident using money, rather than being scared of making a mistake or unconfident how to make financial decisions.
So, What Does “Raising Rich Kids” Actually Mean?
According to the book, raising “rich kids” has very little to do with raising wealthy children. It’s about raising kids who:
- Understand money
- Feel confident making decisions
- Know how to save and spend thoughtfully
- Can navigate a modern digital world
- Feel capable of building their own future
Ultimately, the idea of “real wealth” is about something much bigger than money – it’s about freedom, choice and confidence.
When you have the right financial foundations in place, the world is your oyster! You can go on adventures, enjoy different experiences and take risks, knowing that you have the cash behind you to withstand the costs or the bumps in the road.
Want to learn more?
If you’re looking for more practical ideas around raising financially confident kids, How to Raise Rich Kids explores topics like pocket money, saving, spending, investing and navigating money conversations at every age and stage.
Find out more about the book here.
Sarah Megginson is a personal finance expert, editor and media spokesperson with over 20 years of experience writing about property, investing and money. She is Head of Editorial at Finder and author of How to Raise Rich Kids.
Her book explores practical ways families can build strong money habits, financial confidence and long-term wealth – without needing to already be rich themselves.