I think it’s safe to say that most parents would like to give their children the best start and least worry when it comes to money, but how can we do that? We want them to have as many experiences as possible, but we don’t want them to dismiss the value of money.
Here are three easy to implement strategies that can help your child develop some key principles (some are more relevant to young children and others to early teens):
Start budgeting and saving at a young age
With technology these days, helping kids learn has never been easier. There are a variety of ways you can help your children to understand basic budgeting and saving. The first is to lead by example. Talk to your children about your weekly food budget and explain to them how you are saving for your next holiday. They don’t have to know every pound and penny, however, letting them know that you save and spend in equal measures is extremely positive. The next thing you can do is give your children opportunities to model this behavior themselves. Perhaps you can agree on how much of their pocket money will be spent and how much will be saved. The best part, help your children plan what they are saving for. Whether it’s a new toy costing £6 or their first car costing £6,000, help them devise a saving strategy and help them stick to it.
Show them how money can grow
We have spoken about saving but to take this one step further we really want to teach them about investing. There is no correct age for you to do this and you know your children better than anyone. Some children might be more interested than others and that is ok. The most important thing, make it fun! There is a wonderful book for young children, it is called ‘Save your Acorns’ and I highly recommend it. You can teach the concept of investing to your children by simply agreeing to add 10p to every £1 they manage to save, as long as they save it for at least 1 month. They will quickly realise that the more pounds they save the more 10 pence’s will roll-up.
The act of giving
‘No one has ever become poor by giving’
Money values are just as important as money lessons. Showing children the joy of giving to others will hopefully encourage them to do the same throughout their life. One great way to do this is to put their money into spending, saving, and giving jars. Your children can then choose who they would like to help personally, perhaps adopting their favourite animal or helping a community sports team or food bank.
If you’re interested in finding out more about anything that has been discussed above, get in touch with our Financial Advisor Rachel McCallion, today either by email: firstname.lastname@example.org or phone: 07507 792 078
You can also visit our Financial Services page here.