How Can We Use Storytelling to Enhance Financial Literacy in Children?
As a parent, it can be hard to know how and when to broach the subject of money with children. We all want to give our children the best start in life, and part of that is setting them up to be financially literate. Making financial decisions can be stressful, and one of the ways we can protect our children is by teaching the basics early on. We can give them the tools they need to feel empowered around money so that they can make good choices and avoid falling into unhealthy spending habits.
Banking institutions and financial planners recommend that children be introduced to the idea of money at an early age. The Commonwealth Bank suggests that parents use cash so that children can treat money as a tangible concept. That way, they can feel it, see it, and use it to better understand its value. As they get older, it is recommended to expand that knowledge base by introducing age-appropriate scenarios like earning money by completing chores, determining what is a need and a want, and learning how to delay gratification by saving towards a goal.
Financial counsellor Scott Pape (also known as the Barefoot Investor) is passionate about including financial literacy in the education system so that future generations are well equipped with everything that they need to know about money. He believes that educating your kids on the topic of money when they are young will set them up for financial success in their adult years.
Annette Morgan from the Curtin Tax Clinic has recently released a children’s book called Henry the Wombat Learns to Budget (2025) through the student-run publishing house Elephant Page Publishing. The book is recommended for children between the ages of five and ten years old. It encompasses the way money is used for things that we need, things that we want and the importance of saving money for emergencies that pop up from time to time. The book also demonstrates how parents can enter the conversation by explaining how money is earned, how it is used in the running of the household and how they budget the money to cover family expenses and what they save up for.
Morgan uses the “three bucket” system that is advocated by many of the major financial institutions where one bucket covers things that we need, one bucket is to save up for things that we want, and one bucket is to save for emergencies. The book shows Henry partaking in chores to earn money and learning about using money for things that he needs. It encourages him to make the choice to save for the items he wants. As a result, he is also able to deal with an emergency that could have derailed his plans to buy his beloved Lego, by having an emergency fund.
The editors and designers at Elephant Page Publishing have reworked the contents of Henry the Wombat Learns to Budget to make it more engaging and easier to follow for young children. They have utilised age-appropriate visual elements such as ensuring that the text and illustrations are well-balanced and easy to follow and using a vibrant colour palette. They have employed storytelling conventions such as keeping the language simple, focussing on a clear and concise plot and creating a relatable character that children can connect with.
Books such as Henry the Wombat Learns to Budget are a valuable addition to the children’s financial literacy resource kit, where even adults have a challenging time navigating how to stretch the budget during this cost-of-living crisis. Hopefully, if we can equip the next generation with the tools to make better financial decisions, we can set them up for success in their future.
Elephant Page Publishing welcomes our readers to submit their own manuscripts to our Acquisitions team for consideration.
Kel McDonough
Marketing and Digital Department.