Here are some top tips on how to help your children learn about money at home...
- Show children the coins and notes you have in your purse or wallet and ask them to help you count them. Talk about the different sizes, colours and numbers on them and how many different coins and notes there are altogether.
- Talk to them about where money comes from. We’re an increasingly cashless society and, thanks to the invention of cashback, it’s easy for children to assume that the supermarket is the source of all of your funds! Showing your child a payslip and explaining how people find employment are good ways of building financial understanding.
- Explain the difference between needs and wants. Contrast examples of things that they need every day such as food and clothing, and items or toys they might want but don’t need. This is a great way of introducing the concept of saving and the need to think carefully about their spending, as well as helping them to understand that sometimes it will be hard and you won’t be able to afford everything everyone wants.
“We learn you have to earn money like in our real life when we leave school.”
- Set savings challenges. If you give your child pocket money or an allowance, talk to them about setting a savings target and encourage them to adopt good habits early. This is a good opportunity to introduce ideas around keeping your money safe and planning for the future.
- Involve them in the weekly shop. As you go around the supermarket, ask your children to choose the best-value combinations of set products and get them to do the adding up as you go from aisle to aisle. As well as learning valuable lessons, your new helpers can make your job easier at the same time!
- Talk about the different ways of paying for things – from cash and traditional debit or credit cards, to paying with contactless cards or even using your mobile phone. Have they seen any of these in action? Talk about some of the pros and cons of payment methods – e.g. using a contactless card is quick and easy, but there’s also a risk to being able to spend money so easily.
- Highlight the importance of keeping our personal details safe and secure, and not to share the passwords or PINs we use with others. If we think a password or PIN has been copied or guessed by someone, we should change it as soon as possible.
- Involve them in appropriate spending decisions, such as buying a new kitchen appliance. Making real life spending and saving decisions about even small amounts of money can help children to understand more about managing their own money.
- Look at utility bills together to explore the cost of running a home. Can they help to manage the household budget? See if they can find any savings that could be made!
- If you give some of your money to charity, then involve your children in deciding which charities to support. Choosing a local charity that you can visit or sponsor-a- child schemes will help your children to see the difference this makes.
- Remember - It’s ok to make a few mistakes! it’s how we all learn, and that applies to money as well. It’s far better for children to be making mistakes with little or no consequences than them facing bigger money issues when they are older which could have a much bigger impact.4
You can find even more ideas, videos and activities to help parents like you teach your child the habits that lead to being a money-savvy adult if you click below.
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