How to talk about money with young children

Talking about money does not have to start with what your family earns, spends or can afford. It can start with a story. A character wants something, there is a choice to make, and you wonder together what they could do.

At Pocket Money Adventures, we use stories, play and everyday choices to open that conversation. The activity below is for adults sharing it with children aged 4–7. Try it at home, in a classroom or with an appropriate community group. No real money, shopping trip or personal answer is needed.

Start with a pretend shop

Draw three large circles on a scrap of paper. These are the character’s three pretend tokens. Next, draw a sticker costing one token and a toy kite costing three. Simple shapes and spoken descriptions will do.

Tell this short pretend story: “Our character has three tokens. They like the sticker, and they would also like the kite. What could they choose?”

Leave room for more than one idea. The character could choose the kite, choose the sticker, keep the tokens for another time or decide not to buy anything. Making a kite, or borrowing one with permission, could be another part of the conversation. Do not promise that more tokens will arrive later.

Show the choice before asking for an answer

Move or cover one drawn token to show the sticker’s cost. Two tokens remain, which is not enough for the three-token kite today. Reset the drawing, then show what happens when all three tokens go towards the kite. None remain for the sticker.

You might say: “The sticker leaves two. The kite uses all three. Which choice shall we explore?”

Keep the amounts visible. An adult can do the counting, so joining in does not depend on quick arithmetic. The point of this conversation is to explore the choice, not to catch a child out.

Offer Tap, Tap, Pause.

Our routine is:

Tap, Tap, Pause. Take one breath, then ask, “Do I need it, or do I want it?” and “If I get it now, what can’t I get later?” Then choose.

Keep the words together, without inserting a question between the taps. An adult can model the routine as the pretend character before inviting the child to join in. “Can’t tap, or don’t want to? A breath works too.”

For this story, you could model: “I want the sticker. It costs one token. That would leave two, so I could not get the kite today.” That is an explanation, not an instruction to reject the sticker. Wanting something is allowed, and choosing it now is not automatically the wrong answer.

Offer the routine rather than using it as a warning or a way to make a child agree with an adult. Never move a child’s wrist for them or give rewards for doing the routine.

Listen for the reason, not your preferred answer

Try asking: “What makes that choice work for the character?” Give them time before asking another question.

A child may want the kite because the character could play outside. Another may choose the sticker because they like decorating things. You can explore either idea. There is no need to turn saving into the answer that earns the most praise.

Keep the conversation about the pretend situation. Do not ask what the child owns, what their parents buy, or whether their family has enough money. Nobody needs to explain their circumstances to take part.

Make room for different ways to join in

A spoken explanation is only one option. A child can point, draw, sign, look towards a choice or use their usual communication support. Show one option at a time where helpful. Passing is an option too.

There is no timer, score or required performance. Stop when the conversation comes to an end. A child choosing one thing in this activity does not tell us what they will do independently in a shop, or prove a lasting change in behaviour.

Finish with something small

You could finish by drawing the character with their chosen item, keeping the tokens on the page or closing the pretend shop. Another day, try a different story using something you already have. Do not make another worksheet or a purchase the condition for continuing.

The closing line from Ava’s story is: Save some. Spend some. Share some if you can. It is not a requirement to divide money into three equal amounts, or to share when that is not possible.

For Talk Money Week, 2–6 November 2026, the Money and Pensions Service’s theme is “It All Counts.” This is our practical contribution: one conversation using a pretend choice. The activity remains available afterwards. Participation does not imply endorsement of Pocket Money Adventures by the campaign organiser.

Try the free activity pack

Get the free three-page pack: a family activity sheet, a staff and host sheet, and optional pause cards. Download the whole pack or just the page you need. No email address or purchase is required.

School programmes and Community sessions are our two delivery routes. Adults can explore the relevant offer after trying the activity; joining an updates list is optional.

Campaign date and theme: Money and Pensions Service, Talk Money Week 2026. Activity and routine: Pocket Money Adventures. This campaign resource is separate from the assessed School Edition.