5 Common Myths About Financial Literacy – Busted!

Financial literacy isn’t just for adults—it starts in childhood. At Smartmonies, we believe every child should feel confident with money. But common myths often hold families and schools back.

In this post, we bust five myths that stop children from learning about money early on—and show why it’s so important to start now.

Myth 1: “Children are too young to understand money.”

Fact: Children as young as three can grasp basic money concepts like saving, spending, and sharing. By age 7, many of their financial habits are already forming (Money Advice Service, UK). Waiting too long to start can miss a crucial window to shape healthy attitudes.

At Smartmonies, we use games, relatable scenarios, and everyday examples to help 8–12 year-olds understand the value of money in a fun, age-appropriate way.

Myth 2: “Financial literacy is boring or too complex.”

Fact: It only feels boring when it’s taught like a textbook. In reality, money touches every part of life—shopping, earning, decision-making, even birthday parties! When taught through stories, challenges, and real-life play, kids are excited to learn.

Our sessions include supermarket spy games, budgeting tasks, and choices that reflect real-world situations—keeping it practical and exciting.

Myth 3: “They’ll learn about money in school eventually.”

Fact: While financial education is on the UK curriculum, how it’s delivered varies from school to school—and many children receive just a few hours a year.

That’s why extra learning at home or through trusted programmes like Smartmonies is so valuable. It reinforces key messages and helps children build real money confidence over time.

Myth 4: “If they don’t earn money yet, what’s the point?”

Fact: Children are already making money choices—deciding how to spend their pocket money, asking for toys, comparing brands, or saving for something special.

Learning about needs vs. wants, delayed gratification, short-term and long-term savings and planning ahead helps them make smarter decisions now—and builds habits that last into adulthood.

Myth 5: “Talking about money is stressful—it’s better to avoid it.”

Fact: Avoiding money conversations often causes more confusion later. The earlier we normalise talking about saving, spending, and even mistakes, the better.

Money doesn’t need to be stressful. Smartmonies offers tools that help families talk openly and positively about money in everyday life.

Final Thought

Financial literacy isn’t about having all the answers—it’s about building confidence, curiosity, and the ability to ask good questions. At Smartmonies, we’re helping children across the UK take their first steps toward a healthier money mindset.

Ready to Level Up Their Financial Skills?

📘 Book a Smartmonies lesson today and help your child begin building essential financial skills for life.

🎁 Use code SMARTSAVER and get £10 off your first session!