Kids money: why I always talk to my children about cards, accounts, cash, and saving — and you should too

• Fintech entrepreneur Richard Carter says parents must speak openly to kids about finances
• He teaches daughters Charlie (12) and Sophie (10) about saving, spending, and how money really works
• Richard ensures his kids understand the difference between debit, credit, and the illusion of ‘tap-to-pay’ spending
• From chores to supermarket trips, he believes kids should see money in action to build financial common sense
• With rising bills, he says children must be part of conversations about household costs and responsibilities

One of the UK’s top fintech entrepreneurs is urging parents to talk openly about money with their children.

Richard Carter, founder of Lopay — the UK’s highest-rated, lowest-cost payment app, launched in 2022 — says regular conversations about finances are vital for raising financially savvy kids.

Carter, who lives in Fulham, London, with his wife and two daughters, Charlie (12) and Sophie (10), believes that teaching children about key topics like inflation, the cost of living, saving, and spending helps prepare them for financial independence later in life.

Drawing on his experience both as a parent and as a business leader, Richard has shared his top tips for helping children build strong money habits from an early age.

Get talking

Richard understands that many Brits consider money talk to be a bit taboo, but he firmly believes it’s crucial to have open conversations with children so they learn the true value of money.

As a father of two, he’s more than happy to hand out pocket money in exchange for completed chores around the house.

He says it’s a great way to show his daughters that hard work leads to reward — a principle that’s just as important in business as it is at home.

Richard says: “We are all far too awkward around money, incredibly it’s still considered bad manners to talk about it too much. This has to change. Your children need to understand about money and not shy away from the subject.

“Whether we like it or not, money makes the world go round, and the sooner kids are included in conversations about it, are aware what things cost, how some things are affordable whilst others aren’t, and how they can build up their savings, the better.”

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Make it age appropriate

Richard acknowledges that some money conversations become easier as children get older. As a parent to a pre-teen and a teenager, he knows that certain topics may be more appropriate to discuss with his eldest daughter for now.

But above all, he believes money should never be a mystery. Children should grow up with a clear understanding of finances — not left in the dark.

After all, he says, family finances should involve the whole family, with everyone aware of the household’s financial situation.

Richard said: “There’s no reason why you shouldn’t start kids young, establishing simple concepts about money which you can build on as they mature.

“Keeping your language simple, and introducing them to key words like savings, deposit, credit and debit will help them to become financially literate from young.

“Research from Cambridge University has suggested children develop beliefs and attitudes about money from the age of seven, so don’t be scared of starting them too early.”

Explain where money comes from

Working in fintech, Richard is more aware than most of the illusion that money is endless — especially when it’s all accessed through a tap of a card.

In a world of contactless payments and buy-now-pay-later offers, it can seem like people are spending freely without consequence. He worries this can give children the false impression that money is limitless.

That’s why, from early on, Richard made it a priority to help his daughters understand how money really works. They know that when their dad uses a contactless card, it’s drawing funds from his bank or credit account — not magic money.

He’s also taught them the crucial difference between a debit card, which uses your own money, and a credit card, which borrows money you’ll eventually have to pay back.

Richard said: “In an increasingly cashless society, kids could be forgiven for thinking that spending money is as simple and easy as the tap it took for you to pay on the card reader at the supermarket, at the shopping centre or in a restaurant.

“Explaining how you work for money and are paid, and how - if appropriate - the beginning of the month might be an easier time to pay for things than at the end, will help kids see there isn’t a never-ending pot of money for them to dip into whenever they need.”

Needs vs wants

As any parent will tell you, kids can make it seem like the latest must-have item is a life-or-death necessity — but of course, it never is. Richard sees these moments as valuable teaching opportunities.

He believes it's essential for children to understand the difference between a need — something essential for life, rarely found on a shop shelf — and a want, which is simply a nice extra.

He’s taken the time to explain this distinction to his daughters, helping them become more financially aware and teaching them that not all purchases hold the same value.

“An area you could cover when they are young could be explaining to them about needs vs wants” suggests Richard.

“This will hopefully help them rein in impulsive ‘wants’ that, however deeply they desire them, are not ‘needs’. And, there should be no immediate passport to get them.”

Involve them

Before launching Lopay, Richard recognised a gap in the market, but he also wanted to ensure that his two children felt involved in financial matters.

He believes it’s an important part of parenthood to include children in purchases, even something as simple as going on the weekly shopping trip.

While the way families handle transactions may differ, Richard made sure his daughters understood the value of money, helping them develop strong financial sense from an early age.

Richard said: “Whether it’s in the supermarket or choosing what car to buy, making your children aware of what is and is not good value will help them to build a strong foundation in financial common sense.”

Build on their understanding of the cost of living - talk bills and costs

Richard strongly believes that financial decisions shouldn’t be kept behind closed doors as children grow up.

He points out that many parents cover their children’s mobile phone bills — so if that bill suddenly jumps, it’s important to sit down together and talk about why. Is your child unintentionally taking advantage of a privilege?

If so, it’s a valuable opportunity for a family discussion about responsibility and consequences. Children need to learn that money doesn’t grow on trees — everything comes at a cost.

While some families can absorb an unexpected bill, others might face real financial strain. And with the cost of living continuing to rise, Richard says it’s more important than ever to involve kids in honest conversations about money.

He makes a conscious effort to keep his daughters in the loop, helping them understand the reasoning behind the financial choices made at home.

He says: “As your child grows up, so should their understanding of the financial choices you are making along the way.

“Sharing details of running costs of heating, what their mobile phone bill is monthly, will help to ground them and appreciate the efforts that go into making their everyday lives run smoothly,” explains Richard.

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