Simple, powerful money lessons even a 5-year-old could understand — and adults should follow. These five kid-friendly principles offer surprisingly effective financial wisdom for real life, from saving candy to sharing cookies.

5 Simple Money Tips That a 5-Year-Old Can Understand

Money can be confusing — even to grown-ups. But imagine if the solution to making wise financial choices lay in explaining them as if to a 5-year-old? When you boil away the buzzwords, the jargon, and the über-complex techniques, you end up with wisdom that even a kindergartener could relate to.

And guess what? That's typically the advice that gets results. Here are five slices of financial wisdom so easy, straightforward, and earthy that even a 5-year-old would understand them — and adults should definitely listen up, too.

1. Don't Eat All Your Candy at Once (A.K.A. Save Some for Later)

Picture giving a kid an entire bag of candy and saying to them, "You can eat some now, but if you save a few, you'll have treats for later too!" That's saving in its truest sense.

We live in a world of instant gratification, and adults fall into this trap more often than they’d like to admit. Whether it's paycheck-to-paycheck living or splurging on the latest gadget, the idea of "save some for later" often gets lost in grown-up pressures.

Why it matters: Saving doesn’t require a big income or fancy tools. It starts with the simple choice not to use all your resources right away. Whether you’re putting away 10% of your paycheck or skipping one takeout meal a week, saving is the grown-up version of not eating all your candy — and your future self will thank you.

How to do it: Make it automatic. Have your bank account send money into savings on the day you receive your paycheck. Out of sight, out of temptation.

2. You Can't Buy It If You Don't Have Enough Stickers (Live Within Your Means)

A child who is 5 years old understands that if he or she wants a toy worth 10 stickers but they only have 6, then they must either wait or collect more stickers. Elementary mathematics. No credit. No overdrafts. Just plain sense.

Why it's important: Grown-ups often forget about the sticker rule. We swipe, use Buy Now, Pay Later options, and make monthly payments on items we cannot afford. But the thing is, living outside of your means catches up to you—and fast.

How to do it: Monitor your spending. If your income is too low to cover your expenses and leave room for saving, it's time to cut back. Spend less than you earn, and you'll always remain in charge.

3. Swap Your Toys, Not Just Purchase New Ones (Use What You Have First)

A child may say, "Let's trade toys!" rather than pleading for a new one. Why? Because it's thrilling to receive something "new" without having to spend more money. Adults can do the same by utilising what they already have better.

Why it matters: Our default is to purchase new clothes, electronics, kitchen gadgets, and cars. But in most instances, we already have more than we need. Swapping, repurposing, borrowing, or simply enjoying what we have is a lost art in adult life.

How to do it: Have a "no spend" week and use what you already have. Borrow clothes from a friend. Get creative with leftovers. Use up what you have in your pantry before you go shopping again. It's like a game — and saves like a champ.

4. Share Your Cookies (Give a Little, Even When It's Hard)

If a child sees someone without a snack, their instinct is often to share. Not because they have a lot, but because they care. Teaching kids to share what little they have is a timeless life lesson — and it holds true in personal finance, too.

Why it matters: Generosity instils an abundance mindset. When you give — even a small amount — it loosens the hold of scarcity and fear that too often motivates reckless financial actions. You become more thoughtful, thankful, and mindful of what you really need.

How to do it: Put a small percentage (even only 1%) of your earnings aside for giving. To charity, a cause you believe in, or someone you know who is in need, giving creates a good relationship with money — one of purpose, not pressure.

5. Wait Your Turn (Patience Pays Off)

One of the initial lessons we instil in children is to wait their turn. No pushing, no cutting in line. Just wait. The same rule applies marvelously to your wallet.

Why it matters: Delayed gratification is one of the best predictors of financial wellness. If you can wait before you buy, particularly for a large purchase, chances are better that you'll make a wiser, more informed choice.

How to do it: Experiment with the "48-hour rule." Need something? Wait 48 hours. If you still need it — and can pay for it — then buy it. Otherwise, you just avoided an impulse purchase you didn't need. With time, these small delays pay off in huge dividends.

Grown-Ups Could Use Kid Logic — But You Can Also Use A Pay Advance As A Fallback

Financial smarts doesn't have to be rocket science. Some of the best approaches are the simplest ones — the very same ones we'd explain to a kid who's just starting to understand how the world works. Save a little. Don't spend what you don't have. Use what you already have. Be kind. Take turns. Occasionally, taking it back to the beginning is the best thing you can do.

But of course, a kid can also tell you that it is okay to rest when all else fails. If you ever face financial difficulties, you can always turn to your fallback. And if, somehow, you do not have one yet, you can turn to Wagetap for that. It is championed as one of Australia’s top wage advance apps, which can give you early access to your pay. Just download the app on the App Store or Google Play and borrow up to $2,000.

For additional help in improving your spending habits, you can always download Wagetap. It is a leading wage advance and bill split app that allows you to access your pay early. Emergencies can always happen and Wagetap can help you handle life's unexpected expenses.