Your head might explode
Finance.
Just saying it can make your head spin.
Now try explaining it to kids. Suddenly, "Your head might explode" seems pretty accurate.
From daily spending to stocks, finance is a vast maze. And it starts in the most unexpected places—like tapping a phone to buy a snack.
This week, you’ve probably seen it. Boom! Finance is Everywhere. Talking to kids about the news…
- "Wait, a Chinese version of ChatGPT is just as good? Cool."
- "Nvidia’s stock dropped 19%—billions lost?!"
- "Wait, what does that mean?"
And suddenly, their heads are exploding. "What’s a stock? Why does this affect me?"
Then, the headlines got even juicier on the financial jargon: economic growth, inflation, recession, cost of borrowing, pension—words that are just floating out there like bubbles, and kids stare, totally lost.
And yet, understanding this matters for them.
Money is invisible—but it’s everywhere
For today’s kids, money isn’t material. It’s digital. Phones and watches handle transactions. No cash, no coins—so the real value of money feels abstract.
Think of it like maps. We used to unfold paper ones. They just follow GPS. Explaining finance is the same: they need a frame of reference.
So where do you start? Make it real.
Try this:
Take all the loose change your kids have in a piggy bank (or empty your collective wallets). Pile it up. Then, compare it to what you spend on food in just one week. It probably doesn't stretch very far.
💥 Mind. Blown.
Suddenly, they’re rethinking that weekend job or why school actually matters.
Because in the real world: education = opportunity = money.
Time to double down on those test revisions.
Let’s break it down further.
Ways To Teach Finance with Everyday School Maths
Percentages
- Interest rates: Instead of handing out pocket money, put £5 in a jar and offer 5% interest daily. Let them watch the money grow. Then, explain simple vs. compound interest and see the difference in how quickly the money in the pot grows.
- Discounts & VAT: Next time they see a 20% off sale on a new pair of jeans, ask them: "How much are you really saving?"
- Depreciation: Their phone was the best when they got it. The minute they walked out of the store, it’s losing value faster than you can say ‘Apple update.’ Depreciation is like watching a balloon slowly deflate. Check Vinted for trainer resale prices or compare new vs. used cars online. Reality check.
Ratios
- Splitting bills: Put a price on helpings of food and drinks at dinner time. Work out the total 'bill' at the end and ask the kids to work out how to split the bill fairly.
- Currency exchange: Traveling? Hand them £10 spending money and ask them to convert it. Suddenly, forex rates will make sense.
Algebra
- Loan & savings formulas: Have them create a formula to calculate how much they'd earn if they saved their pocket money for a month—with interest.
- Budgeting models: Use income = hours worked × hourly rate to show the power of working smarter.
Graphs
- Tracking savings: Chart their spending and savings over time. Watch patterns emerge.
- Comparing costs: Plot phone plans to see which actually saves money. Spoiler: unlimited isn’t always better.
Statistics & Data Handling
- Spending patterns: Get your kids to track their spending for a month—then calculate the average to spot hidden splurges! Mean, median and mode all apply here.
Probability
- Lottery odds: Ask them to calculate their chance of winning the lottery. (Spoiler: it’s bad.)
- Market trends: Got a summer lemonade stand? Check last year’s weather—hot days = more sales. Now, calculate the odds for this summer. That’s how investors predict market trends!
Once kids start spotting these patterns, finance stops being mystical and starts making sense.
Next time they hear “interest rates” or “inflation,” catch them before they zone out…. show them their school maths actually applies to real life.
Until next week,
Nici
P.S.
Email me directly if you want help explaining specific financial terms or methods to kids in ways that will relate to them.
