Top 5 tips on teaching children about money. Ahh, if I knew then what I now know about money…
Finance wasn’t ever something we discussed when I was young and all that I know I’ve learned ‘on the hop’. I’ve realised that money is more than just a conversation – it has to be backed up by actions as well.
My top 5 tips will help to teach your children about money, no matter what age they are.
1. Give children pocket money
It sets an early budget mentality ticking – they’re responsible for their own purchases and have to make decisions about priorities. For more on pocket money, see my recent post here.
2. Let them help to decide what you buy as a family
Where possible, let them in on your methods for comparing items and prices at the supermarket. Then get your children involved with the decision-making – why would they buy this product instead of that one? Look at the unit pricing system together and test whether it provides better value when buying in bulk.
3. Discuss your job
Are your children aware of what you do for a living and why? Most children really do think that money grows on trees – it’s handy for them to understand that your income has to come from somewhere.
4. Go to the bank
Most of us are seen pulling money from a hole in the wall or pocketing cash out from the supermarket checkout. It’s easy for children to get the impression that we’re just waving a magic wand for all that to occur. A trip to the bank will help explain how savings work, where they go and how we’re able to gain access.
5. Discuss your bills and debts
Apart from witnessing you jumping back in horror whenever a window-face envelope comes through the letterbox, most children have no idea about family bills and debts. It’s worth imparting some kind of idea about your financial responsibilities and can help prepare them for meeting their own into the future.
Here is a link to a similar blog Teaching children good financial habits here which you may find useful.
As always, if you have any questions, leave a comment below.
Until next time,
From the desk of Christine