A great way to help kids understand the real value of money is to let them learn for themselves.
It could be fun to put them in charge of this week’s shopping: help them write the lists, set a budget and find the best deals at the supermarket.
In today’s world of online banking and credit cards it can be hard for kids to see where money comes from and where it goes. How about showing them how banking works. Why not take them to your local branch? Next time you’re reviewing your bank statement, show them where your money comes from and how you budget.
63% of children get their first phone before they start secondary school*. Why not preload it with apps and games that will teach them about money as they play.
*source: British Bankers Association.
A valuable lesson for any child is that money needs to be earned. Why not cut down the freebies and tell your kids they can earn extra money by helping out around the house? Price up some chores so they can see how their effort leads to reward.
If you’re tired of explaining that a piggy bank half-full of loose change doesn’t buy an Xbox, how about encouraging your children to make their own savings planner. It could be as simple as a wall chart with colourful stickers, with financial targets to aim towards.
Her Majesty’s face is on every coin and note but the ones in your wallet belong to you. Encourage your kids to become familiar with what pounds and pence look like, rather than watching you pay for everything with your card. A fun way of teaching children about cash is asking them to add up which notes and coins to pay with when you’re shopping.
When your children have a better idea of how money works, you may want to look into opening a savings account for them. They’ll learn how to deposit their pocket money, tooth-fairy rewards and gifts from grandparents. It’s just as secure as a treasure chest and they won’t need to bury it in the garden.