Parents start pocket money lessons in preschool, but many lack confidence

Australian parents are getting an early start on financial literacy, with around half planning to teach children money lessons before they turn eight, Canstar research shows. 

Canstar surveyed 1,974 parents with young children and found 49% intend to start teaching their child about money management between the ages of three and seven, while almost three in four (73%) will have started by age 10. 

Source: Canstar. 2026 Canstar survey of 1,974 parents with at least one child aged 6 or younger. 

Just 1 in 3 parents feel very confident teaching financial skills

While parents are eager to teach financial literacy, many don’t feel fully equipped to do it alone. 

The Canstar research found that just one in three parents surveyed said they feel very confident teaching their children key financial skills, such as saving, spending and managing debt, while one in 10 say they are not confident. 

• 33% feel very confident
• 57% feel somewhat confident
• 9% feel not very confident, and
• 2% are not at all confident.

What are the options for primary school kids?

For parents wanting to introduce their children to digital money, there are two main options: a traditional children's bank account or a dedicated pocket money app.

Pocket money apps

Pocket money apps are designed specifically for younger children, with some available from as young as five years old. Platforms such as CBA’s Kit, Spriggy, Flexischools’ FLX and Revolut Kids & Teens provide a prepaid debit card and app that lets children learn to spend digitally in a controlled environment.

While they look and work much like a debit card, there are often extra safeguards in place. Depending on the provider, children may not be able to withdraw cash from an ATM or transfer money to anyone other than a parent.

Parents retain full control through their own app, allowing them to instantly lock the card, block certain merchants, monitor spending in real time and automate pocket money payments. Many also include chore trackers and savings goals, helping turn everyday tasks into money lessons.

Children’s bank accounts

Most banks allow parents to open an account from birth, although the minimum age to access a debit card varies. Westpac offers debit cards from age eight, followed by CBA at nine, ANZ at 12 and NAB at 14.

Unlike many pocket money apps, bank accounts typically come with a BSB and account number, making it easier for children to receive payments from family members or, later on, an employer. They also generally have no ongoing account fees. 

The government will also guarantee the funds held in a traditional bank account if it’s with an authorised deposit-taking institution (ADI) up to $250,000, in the case something goes wrong with the bank.

Source: Canstar. Note: Kit account is free for CommBank Yello.

Why is it important to talk to kids about money?

Canstar's Data Insights Director, Sally Tindall, says, “Teaching kids about money used to mean handing over a few coins and hoping they learnt the value of a dollar. Today, parents have a growing range of digital tools at their fingertips that can help bring those lessons to life.”

“Parents aren’t waiting until their kids are teenagers to start these conversations. Nearly half are introducing money management before age eight, laying the foundations for good financial habits from an early age.

“However, parents aren’t entirely confident teaching financial skills on their own, with just one in three parents in the Canstar research admitting they feel very confident teaching skills such as saving, spending and managing debt. 

“Notes and coins are a fantastic place to start to teach kids about money – don’t worry – the piggy bank is not dead and buried just yet. However, the reality is at some point, children ultimately need to transition into the world of electronic banking.

“Like most parenting tasks, it’s up to each and every family to decide exactly when they want to transition from notes and coins to a debit card and how. 

“Handing your child debit card in primary school will be a step too far for some families but for others, it’s a practical avenue to teach their kids about the perks and pitfalls of spending, in a relatively controlled environment.

“That’s where kid-focused money apps can play a useful role. These apps can help children see money moving in and out of their account in real time, set savings goals and understand that money doesn’t simply appear when you tap a card.

“Spriggy was the first mainstream option – it’s an independent start up but it is backed by NAB and has been dominating this space for almost 10 years now, although rivals have started to spring up – the main ones being CBA’s Kit and Flexischool’s FLX.

“Before you pick a card, take the time to sit down with your child and compare the options. While your child will almost certainly try to base the decision on the colour of the cards on offer – use it as an opportunity to teach them the merits of looking beyond what’s fashionable and consider what’s functional.

“Finally, do not forget the lesson in fine print. They might be too young for the cup of tea but pull out the Tim Tams if you need. It’s an invaluable habit to get into.

“Technology won’t replace the money conversations happening around the kitchen table, but it can provide practical lessons that make those conversations easier.

“What’s important is that we talk to our kids about money regularly, from an early age because the last thing you want is for them to hit 18, apply for a credit card and learn the incredibly hard way.”