Half of UK parents struggle to explain basic household bills to their kids

• Utility Warehouse shines a light on the everyday challenge of talking to children about money and bills

• New research reveals many adults don’t fully understand common terms themselves

• Utility Warehouse shares simple explanations, by kids for kids, and tips for parents to improve kids’ financial literacy this school summer holiday

According to new research from Utility Warehouse (UW), 50% of UK parents say they make a point of teaching their children about bills and how much things cost. Most parents want their kids to understand money from a young age – but the new research reveals a surprising gap between good intentions and financial know-how.

The survey, of 1,000 UK parents of children aged 5-14, reveals that while most parents agree kids should learn about real-world skills like budgeting (60%) and bill-paying (57%) from an early age, fewer than half of adults feel confident explaining common terms like ‘data allowance’ (47%), ‘direct debit’ (44%), or even ‘broadband’ (44%) in a child-friendly way.

Even more technical terms – like ‘KW/h’ (21%) and ‘energy price cap’ (26%) – leave parents stumped.

And it’s not just the tricky terminology, over 4 in 10 (42%) wish they’d been taught more about money themselves as children. Plus, almost a quarter (23%) say that come September, they’d happily go back to school to learn more about these terms. 

That’s why, this summer, Utility Warehouse is encouraging parents to make the most of the school holidays and use the extra time with their kids to have simple, honest conversations about money and household bills.

"We know parents are already trying to teach their children about budgeting and spending, and that’s brilliant,” said David Walter, from Utility Warehouse. “But many are doing it without feeling confident in their own understanding.

“Our Bills Simplified push is all about making everyday finances feel less intimidating, for parents and kids alike. With children at home over the summer holidays, now’s the perfect time to make those conversations part of everyday life.”

Utility Warehouse, offers energy, broadband, mobile and insurance in one simple monthly bill. Its 70,000-strong network of friendly Partners live and work in communities across the UK, helping to save their friends and neighbours time and money with UW. 

One of those UW Partners is Elizabeth Willetts, a mum-of-two who’s passionate about helping her own kids (and others) better understand how money works, has shared her personal tips for making money conversations with kids easier and more natural.

“As a UW Partner with young children, I’m often asked what I do and how I’m able to work so flexibly,” says Elizabeth. “Being able to balance motherhood with flexible working was really important to me and Utility Warehouse gives me the chance to spend more time with my kids, while helping friends and family save money.

“I love talking to my kids about what I do. They ask me things like ‘what’s a bill’ and ‘how do people save money’ and I’ve developed a series of tips and tricks to help people talk to their kids about all things bills and finances.”

Elizabeth’s top tips for talking to children about bills and money

Make it relatable

If your kids are glued to Bluey, it’s the perfect time to explain how the electricity powers the TV, and how that comes with a cost. It may go in one ear and out the other, but it helps them start connecting the dots.

Ask them questions

Make it a two-way conversation. Ask what they’ve learned at school or nursery that day – you’d be surprised how much they pick up. It opens the door for conversations about money in a natural way.

Incorporate it into learning

If they’re learning numbers or months, you can talk about when bills are due, how adults get paid, and what that money goes towards. It’s also fun (and funny) to hear how they think the world works!

Utility Warehouse hopes its Bills Simplified initiative will not only help children understand the basics of household finances, but also give parents the confidence to talk about these topics without jargon or stress.

To help get families started, Utility Warehouse has created a series of fun videos where kids simply explain common household.