Top Tips on Talking to Children About Money

Money, money, money. Whether you like it or not, living comfortably is all about spending your money wisely and making the most of what you have.

I strong believe it is very important to teach young people the value of money, from speaking to them about pocket money to saving tips. Little man’s favourite subject is money, and he prefer saving to spending. He doesn’t even know what he is saving for, but he wants to save as much as possible. I just hear coins dropping in his piggy bank, and I must say it puts a big smile on my face knowing that little man is on the right track.

However I am aware that not all parents are not comfortable discussing money with their children. According to a recent research conducted by the Money Advice Service, an alarming 58% of UK parents find difficult to talk to their children about money matters. Their latest research around Young People and Money with 2,000 parents respondents highlighted that it is essential to talk to children about the value of money from an early age, so they can be better at saving and planning for the future. 

Since discussing money is a tricky subject, I thought I would share child pychologist Dr Elizabeth Kilbey’s top tips on talking to children about money: 

Subtly integrate money into little one’s lives: For instance, you ask your child to decide between two items while shopping. 

It is never too young to start: Since money habits are developed at a young age, you could help kids understand money as soon as possible.

Be confident: Talking about money is an opportunity to help your children develop positive, beneficial habits.

Have a go: Whenever possible, let your children handle money. Pocket money and role play are great ways to introduce money in hands on experiences.

It is ok to make mistakes: It is better for children to make mistakes when they are young, then to have bigger money issues later on in life.

What are your best tips to help children learn about money?

To find out more about helping children to understand money www.moneyadviceservice.org.uk

This post has been written in collaboration with the Money Advice Service.