When you have little ones, it goes without saying that you want them to have the best life possible. And that means, giving them the knowledge and information needed to go far in life! While school and college take the lead with things like mathematics, sciences and English studies, it’s down to us parents to ensure they have familiarity and enough of the right facts to make the right choices. I’m talking of course, about money.
While we can help them by setting up things like savings accounts and junior ISA’s – for the latest in ISA information check out Wealthify Junior ISAs – which are ideal for savings towards cars, university or even their first home, having their own understanding of money and savings is crucial. Teaching them about money and how to look after it might sound a little daunting, but it’s actually easier than you think! Read on for my tips for teaching the kids about money.
Set a good example
Setting a good example is something we all try to do for our kids, although the habits they still pick up might shock you! If you’re in the habit of paying for everything via contactless or slapping down the plastic every time you make a purchase then you might want to rethink. Although paying via card is easier and more efficient, you’re not showing where your money is coming from or even the fact that it is deducted from your account and not coming back. Try to use cash as much as you can as this gives your child a visual. We all know that money can be stressful but try not to show too much frustration in front of your little ones.
Let them know money doesn’t grow on trees
It might seem obvious to us, but when you head to the ATM and cash comes out it can seem to a little one that you’ve been given all that cash for free! Explain to them – in simple terms of course – that you work to earn money, it goes into a bank account and you can take out a little bit at a time when you need to. Make sure they know that the bank is where it is kept safe.
When it’s gone it’s gone
If there’s something your little one would like to buy with their own money, try to avoid paying for it yourself and then deducting the money from their piggy bank later. Let them remove the money themselves and help them to count out the right amount. Allow them to choose the item and pay the cashier. They’ll soon grasp that once it’s gone it’s gone!
Give them commissions
We all want to spoil our little ones but giving them and allowance for effectively nothing isn’t always the best example. Instead of giving them pocket money, try giving them commissions. You can find chores around the house that are age appropriate and give them money for a job well done. It’s the best way to show them that money comes from working hard.
What are your best tips for teaching children about money?