Learning how to manage money early in life brings lifelong financial rewards
Department of Finance report found 'there is still a significant amount of the adult population that do not have the minimum level of financial literacy needed for managing their money on a day-to-day basis or to consider their long-term financial wellbeing.'
Up to 43% of adults in Ireland do not meet the minimum OECD level of financial literacy to navigate their finances.
A 2024 report by the Department of Finance pointed out “there is still a significant amount of the adult population that do not have the minimum level of financial literacy needed for managing their money on a day-to-day basis or to consider their long-term financial wellbeing”.
On the basic premise that it’s never too early to learn financial skills, Start Money Smart is a primary school resource developed by the Irish League of Credit Unions and online educational company Twinkl Ireland. It is divided into tailored activities to suit each level from junior infants to sixth class, and topics include earning money, budgeting, spending, saving, and impulse buying versus investing.
“Teaching very young children, in primary school as a start, about personal finance can really plant those early seeds for financial success,” said the Irish League of Credit Unions chief executive David Malone.
“We find the interaction in the classrooms, where not only is the teacher going through this with the kids, but they’re learning from each other as well.”
The Irish League of Credit Unions also runs a ‘Clued In’ educational programme for secondary schools, focusing on disposable spending and budgeting.
Leah McMahon, a financial adviser with Castle Capital Financial Planning stresses the importance of learning the basics of sound money management early in life.
In 2023, she established a financial literacy programme for transition year students at her former school, Castletroy College in Limerick. She targeted the mid-teen group aged 16 and up who already have a sense of how money works from part-time jobs.
“Forming the habit is key, and it’s easier at that age than in the 20s and 30s,” she says.
Named as a shining star in the Network Ireland Limerick Businesswoman of the Year awards 2024, Ms McMahon is one of just 900 certified financial planners in Ireland, educating TY students daily money management techniques and how to budget earnings from pocket money to pay cheques.
“The programme runs like a workshop, and is the exact same stuff I would say to adults — when the money comes in, you have to put a portion of it into savings, a portion into bills and a portion into fun stuff.”
Credit cards are a clear danger zone for teenagers, where one missed payment can become a black mark on a credit history, and which may well impact on mortgage applications down the line.
In January, Ms McMahon outlined five ways to save €2,500 over the course of 2025:
- Ensure a certain amount of your wages goes into a savings account — saving €20 a week at the beginning of January will equal €1,000 by the middle of December;
- Grocery shopping online makes it easier to control your budget and buy only what you need — eliminating walking along the aisles and adding unnecessary extras;
- Shop around for providers at the end of a contract rather than automatically rolling into a new contract with the same provider;
- Review your subscriptions, keeping on the most used and cancelling the least used;
- Change your socialising habits by looking at local events and gigs, rather than bearing the cost of travel, hotels and major venue tickets.
“Understand the money that comes in and the money that goes out,” she advises. “Be able to control your expenses and save towards your goals.”
