The long summer holidays bring plenty of opportunities for children to spend money, from ice creams and day trips to gaming and shopping with friends. They also give parents a useful chance to help children practise managing it.
To mark My Money Week, we’ve rounded up 10 simple ways to help children become more confident with money over the summer holidays.
“Learning about money – from where it comes from to how to manage it – equips us for life,” says Duncan Fortune, head of product at Tesco Bank.
“Whether it’s budgeting, saving or simply understanding what money looks and feels like, involving children from a young age goes a long way in developing valuable money skills. It also teaches them that money isn’t a taboo topic, but something they can ask questions about and learn to understand.”
1. Give them a summer spending budget
If you can afford to, give your child a small amount to manage over a day, week or part of the holidays.
Younger children might receive £5 to spend during a day out, while a teenager could take responsibility for a weekly allowance covering snacks and social plans. Explain clearly what their budget needs to cover and what you will continue to pay for.
Try not to step in immediately if they spend everything too quickly. Finding out on Monday that there’s nothing left for Friday is a useful lesson when the amount is small and their essential needs are still covered.
You can help them pause before buying by asking whether they would rather have the item now or save for something bigger. Avoid questioning every decision, though. Having some freedom to choose is part of learning.
2. Let them plan a family day out
Set a realistic budget and ask your children to help plan a summer day out. They can compare admission prices, transport costs and food options, then work out how to keep the total within budget.
Older children could investigate whether booking ahead, travelling off-peak or taking a picnic would save money. Younger ones can choose between a few options and help add up simple costs.
This is also a chance to explain that spending well doesn’t always mean picking the cheapest option. Sometimes it makes sense to spend more on the part of the day everyone will enjoy most and save elsewhere.
3. Try a supermarket challenge
Everyday shopping is one of the easiest places to introduce budgeting.
Give younger children a short list and a fixed amount to spend. Older children could plan the ingredients for a family meal, compare unit prices or see whether they can find a good-quality alternative for less.
Talk about why price isn’t the only consideration. Will you use the whole packet? Is there lots of unnecessary packaging? Could you buy something locally produced or in season? Is a cheap item still good value if it breaks or ends up in the bin?
Getting children to help cook the meal afterwards makes the exercise feel like a useful contribution rather than financial homework.
4. Introduce pocket money
Regular pocket money gives children the chance to make real decisions while the sums involved are relatively small. It doesn’t need to be a large amount, and parents shouldn’t feel under pressure to give more than they can afford.
You could divide the money between three pots:
Spend: money they can use now.
Save: money for a larger goal.
Give: money they can choose to donate or use to help somebody else.
Let your child decide how much goes into each pot rather than imposing fixed percentages. A transparent jar works well for younger children because they can see their savings growing.
Pocket money apps and children’s debit cards can help older children practise making cashless payments. Some let parents set spending limits, allocate money for chores and receive notifications when the card is used. Check the fees, controls and provider behind the account before signing up.
5. Help them earn their own money
If your household budget doesn’t stretch to regular pocket money, or your child wants to earn more, encourage them to think of age-appropriate ways to make it.
You might pay for occasional jobs beyond their normal responsibilities, such as washing the car, sorting out a cupboard or helping with gardening. Older children could offer to water plants for neighbours, wash cars or sell unwanted clothes, books and toys with an adult’s help.
Talk through any costs involved and help them decide what to do with their earnings. Saving a proportion before spending the rest is a useful habit, even if the amount is modest.
Keep chores balanced. Children shouldn’t expect payment for every contribution they make to family life, but earning money for additional work can show them the connection between effort and income.
6. Involve them in holiday planning
If you’re going away, tell children how you are budgeting for the trip and invite them to help with some of the decisions.
They could compare the cost of activities, help choose between eating out and making a picnic, or save their pocket money for souvenirs and treats. Giving them their own holiday spending budget may also reduce repeated requests for extras.
A trip abroad brings another useful lesson. Give older children a small amount in local currency and show them how exchange rates affect what their pounds can buy. Explain any charges that may apply when using cards or withdrawing cash overseas.
You don’t need to share every detail of the family finances. Give children enough information to understand the choices without making them feel responsible for adult money worries.
7. Show them how household bills work
Children see lights, heating, streaming services and Wi-Fi as part of everyday life, but may have little idea what they cost.
Show older children a household bill and explain how it’s calculated. A smart meter can help younger children see how energy use changes when appliances are switched on and off.
You could set a family challenge to reduce unnecessary electricity use, waste less food or make better use of things you already own. Keep the focus on avoiding waste rather than making children anxious about every light switch.
Subscriptions are another useful topic. Show them how a small monthly payment adds up over a year and check together whether the service is still being used.
8. Explain what happens when you tap a card
Cashless payments can make spending appear effortless. Young children may see an adult tap a card or phone without understanding that money has left an account.
Explain that you earned the money, it is held in your bank account and the cost is deducted whenever you pay. Gift cards can help demonstrate this because they contain a fixed balance. Once it has been spent, it is gone.
Older children can learn to check their balance and recent transactions. Show them the difference between available and pending payments and explain how subscriptions and free trials can lead to recurring charges.
9. Talk about gaming, social media and scams
Money spent online can feel less real, particularly when games use coins, gems or other virtual currencies.
Ofcom research published in 2025 found that 42 per cent of children who had made in-game purchases were unclear about what they were buying. A third regretted an in-game purchase, while 43 per cent regretted a purchase made through social media.
Ask children to convert virtual currencies back into pounds before buying anything. A 24-hour pause before non-essential online purchases can also help curb impulse spending.
Make sure older children understand that they should never share passwords, PINs or one-time security codes. They should tell a trusted adult if somebody offers them money to receive or transfer funds through their bank account, as this could involve money muling.
Reassure them that they can come to you if they make a mistake. Children may hide a problem if they think admitting it will automatically mean losing their phone or gaming privileges.
10. Introduce saving and investing
Saving for something specific helps children understand why waiting can sometimes be worthwhile. Work out together how much they need, how long it could take and whether there are ways to reach their goal sooner.
For longer-term savings, a parent or guardian can open a Junior ISA. Families can save or invest up to £9,000 for a child in the 2026/27 tax year, free from UK tax on the interest or investment returns. The money belongs to the child and cannot normally be accessed until they turn 18.
If you invest for your child, involve them in age-appropriate conversations about where their money goes. The Big Exchange specialises in independently assessed impact funds. Wealthify offers ready-made ethical portfolios with a £1 minimum investment, while Hargreaves Lansdown lets parents choose their own sustainable funds and charges no platform fee for its Junior ISA.
Children may be interested to discover that their money can support some companies and industries while avoiding others. See our guide to the best ethical Junior ISAs for more options and a comparison of charges.
Investments can fall as well as rise, and your child could get back less than was invested.
Don’t be afraid to talk about mistakes
Children learn a great deal from watching adults. You don’t need to pretend you have always made perfect financial decisions.
Talk about why you are comparing prices, waiting before buying something or changing a plan because it costs more than expected. If you regret a purchase, explain what you would do differently next time.
The goal isn’t to raise children who never spend money on anything frivolous. It is to help them understand their choices, recover from small mistakes and feel able to ask questions.
Summer provides plenty of low-pressure opportunities to begin. Even deciding whether today’s ice cream is worth dipping into tomorrow’s spending money can be a useful place to start.
