There’s something special about a grandparent’s advice – especially when it comes to money.
After all, today’s grandparents lived through high interest rates, recessions, and the invention of tap-and-go. Those lessons in patience, planning, and persistence are priceless – and perfect to share with younger generations just starting to earn and spend.
Here are a few financial principles worth passing on.
1. “Pay yourself first – even if it’s just a few dollars”
This old-fashioned saying has stood the test of time. It means that before you spend your pay, you set aside a little for your future self.
Encouraging grandkids to transfer even $10 of each pay into a savings account helps them see how small amounts grow.
Many banks now offer “round-up” savings features that automatically deposit spare change into a savings account after each purchase – a modern twist on the classic piggy bank.
It’s also worth introducing them to compound interest – the magic of earning interest on interest. It’s the simplest way to show how time, not timing, is the real secret to building wealth.
2. “If you can’t buy it twice, you can’t afford it once”
This saying helps kids think critically about spending. In a world of Afterpay and online shopping temptations, waiting before buying is a powerful skill.
Suggest they try the “24-hour rule” – if they still want it the next day, they can reconsider. It’s a gentle way to teach restraint and avoid impulse spending.
Grandparents can share stories from their own early days – saving for a first car, buying a home, or working extra shifts to afford something special. Real-life examples make the lesson stick far better than any lecture.
3. “Let your money make friends”
Once the basics of saving are down, introduce the idea of investing. For Aussie teenagers and young adults, this could mean setting up a micro-investing account (like Raiz or CommSec Pocket) to learn how the sharemarket works.
You might explain it as letting money “make friends” – earning its own income through dividends and growth. Even small amounts can demonstrate how compounding works over time.
Just as importantly, encourage them to learn the difference between investing and gambling – steady, long-term investing builds wealth, while chasing “get rich quick” schemes often does the opposite.
4. “Give some, save some, spend some”
A balanced money mindset includes generosity.
Many grandparents encourage a simple rule: split every dollar into three jars – one for spending, one for saving, one for giving. It teaches budgeting, gratitude, and perspective from an early age.
Whether it’s donating to an animal charity or saving for a concert ticket, it shows that money isn’t just for taking – it’s for caring, planning and enjoying responsibly.
5. “Never stop learning about money”
Financial literacy is a lifelong skill, not a one-time lesson. Encourage your grandkids to keep reading, listening and asking questions.
Australia has great free resources – from ASIC’s Moneysmart website to podcasts like She’s on the Money or The Australian Finance Podcast.
The goal isn’t perfection, but confidence: knowing how to budget, avoid debt traps and make choices that match their values.
The Bottom Line
Money habits are formed early, but wisdom lasts forever. Sharing practical, values-based lessons helps grandkids grow into confident, capable adults who see money as a tool not a stressor. So next time you tuck a $20 bill into a birthday card, slip in a little wisdom too. It might be the most valuable gift you ever give.
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