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Helping children understand value, empathy, and financial resilience in uncertain times
It’s impossible to ignore the impact of the UK’s cost of living crisis. Rising prices, energy bills, and tighter family budgets have affected homes and classrooms alike – and for many children, this has quietly become part of their everyday world.
But rather than shielding them from money conversations, this moment offers a powerful opportunity: to help children develop empathy, awareness, and lifelong financial skills that prepare them for a changing economy.
At ThinkPieces, we believe financial education isn’t just about numbers – it’s about building confidence, curiosity, and care.
Understanding What’s Happening – in Child-Friendly Terms
The cost of living crisis simply means that the things families buy – food, clothes, energy, housing – have become more expensive, while pay hasn’t kept up. Even primary-aged children notice when shopping trips feel different, or when parents make more careful choices.
Teachers and parents can use these real-world examples to start simple discussions:
- Why do prices change?
- What are needs versus wants?
- How do families make choices when money feels tight?
By framing these questions positively, adults can turn uncertainty into valuable learning moments.
What Children Are Learning – Without Realising It
Research from the Bank of England, Young Enterprise, and the Money and Pensions Service shows that children’s financial habits are largely formed by age seven. The current economic climate, while difficult, can accelerate those lessons in resilience and understanding.
When children see families budgeting, planning meals, or comparing prices, they’re learning:
- That money is finite – and decisions have trade-offs.
- That saving and sharing both have value.
- That small, consistent habits make a big difference over time.
Even conversations like “we’re saving for Christmas” or “we’re turning off the lights to save energy” teach practical lessons about prioritising and caring for resources.
Schools’ Role in Supporting Financial Literacy
Across the UK, schools are finding creative ways to integrate financial education into PSHE and Maths lessons.
Simple projects – from classroom “shops” to mock family budgets – help children explore real-life money choices without pressure.
At a primary school in London, teachers recently used a Family Budget Challenge to help pupils understand how small everyday choices – like meal planning, energy use, or saving for shared goals – can make a big difference over time.
These activities reinforce that financial education isn’t just about arithmetic – it’s about values, empathy, and decision-making.
With the right resources, teachers can help children connect what they see at home with what they learn in school, encouraging curiosity and resilience in the face of economic uncertainty.
A ThinkPieces Resource: Turning Challenge into Learning
To accompany this blog, we’re developing a ThinkPieces classroom pack – “Budgeting in a Cost of Living World”.
It includes:
- 10 classroom scenario cards (families facing everyday money choices)
- A budget tracker worksheet for group discussion
- Reflection questions that link money decisions with emotional literacy
This resource can be used in PSHE, Maths, or form time to encourage conversation and problem-solving – helping children connect empathy with practical money sense.
🧩 A Piece to Think About
The cost of living crisis may be testing families and schools, but it’s also reminding us what truly matters: empathy, adaptability, and understanding how money choices affect our lives and others’.
By guiding children through these lessons early, we can help them build confidence, compassion, and practical money habits that will serve them for life.
Financial literacy starts at home – but it grows stronger together.
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