Saving and budgeting aren’t just maths skills — they’re life skills. And they’re best learned early, when the stakes are small and the lessons stick. A child who understands at age seven that spending all their money on sweets means nothing left for the toy they really want has learned a lesson that will serve them for decades.
The foundations start with simple concepts: you have a limited amount, things cost different amounts, and choosing one thing means not choosing another.
Why Start Young
Research consistently shows that money habits form early. Children as young as seven are beginning to develop the attitudes toward money that they’ll carry into adulthood. Teaching saving and budgeting at this age isn’t about spreadsheets or bank accounts — it’s about building three core ideas:
- Money is finite — there’s only so much, and when it’s gone, it’s gone
- Spending is a choice — every purchase means giving up something else
- Waiting can be worth it — saving up for something bigger feels better than spending everything now
These concepts sound simple, but they’re genuinely difficult for young children, because delayed gratification goes against every natural impulse. That’s exactly why practice matters.
What to Expect at Each Age
Ages 6–7: Can understand the basic concept of saving — putting money aside for later. Can make simple choices between two options within a budget. Needs visual, concrete tools (a jar, a chart) to track progress.
Ages 7–8: Can manage a small budget across several items (e.g., spending £5 at a fair). Starting to understand trade-offs — buying this means not buying that. Can set a simple savings goal and track progress.
Ages 8–10: Can plan spending across a week or an event. Understands the concept of needs versus wants. Can compare options and make deliberate choices. Starting to think about longer-term savings goals.
How myplayshop Builds Budget Thinking
While myplayshop puts your child in the shopkeeper role rather than the shopper role, it builds essential skills that underpin budgeting:
- Constant exposure to prices develops an intuitive sense of what things cost — the foundation of all budgeting
- Adding up totals reinforces that multiple items add up quickly, the core lesson behind overspending
- Working with different currencies shows that money concepts are universal
- Managing transactions requires keeping track of amounts — the same mental skill used in budgeting
- Different shop types with different price ranges build understanding of how costs vary by category
The game creates price-aware children — and price awareness is the starting point for every good budgeter.
Activities to Try at Home
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The three-jar system — Label three jars: Spend, Save, and Share. When your child receives pocket money or gift money, they split it across the jars. They can spend from the Spend jar anytime. The Save jar is for a goal they choose. The Share jar is for giving to others. This makes saving physical and visible.
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The pocket money shop — Give your child a fixed weekly budget (real or pretend). Set up a “shop” at home with priced items — snacks, small toys, screen time vouchers. They can buy what they want, but when the money’s gone, it’s gone until next week. This teaches finite budgets fast.
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The savings goal chart — Help your child choose something they want that costs more than one week’s pocket money. Draw a chart or thermometer and colour it in each time they add to their savings. The visual progress keeps motivation alive.
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Holiday budget — Before a day out or holiday, give your child a set amount for the day (say £10). They choose how to spend it — an ice cream here, a souvenir there. When it’s gone, it’s gone. Discuss their choices at the end of the day.
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The opportunity cost game — When your child wants something, ask: “If you buy this, what else could you have bought with the same money?” Show them two or three alternatives at the same price. This builds the habit of considering options before spending.
Tips for Parents and Teachers
- Start with visible money — Jars, coins, and physical notes make budgeting concrete. Digital money is abstract and harder for young children to grasp.
- Give real choices — The learning happens when children make real spending decisions, not pretend ones. Pocket money, however small, is the best teaching tool.
- Let them make mistakes — If your child blows their whole budget on day one, don’t bail them out. The discomfort of having nothing left is the lesson. Be sympathetic, not rescuing.
- Celebrate saving, not just spending — When your child reaches a savings goal, make a big deal of it. The pride of buying something they saved for is powerful.
- Connect to myplayshop — Regular play builds the price awareness and number fluency that makes budgeting feel natural rather than difficult.