How To Teach Your Kids About Money
Parents up and down the UK ask themselves the question of is it time to teach our kids about money? But, honestly, there is no set time, date or age. As an adult, you will know the importance of money and finances, thankfully, children tend to adapt and mimic the actions of the close family members and friends from a young age, so as you can see them developing and learning, why not try and throw in some vital life skills. The difficult part of the whole process is understanding how you can help them build their knowledge at such a young age. But, that is why we are here to help and advise you through this post.
Talk to them about it
A young child who barely has any knowledge is not going to understand the majority of the things that you say to them when it comes down to money. But, there is no harm in trying.
The amount of information they take in and understand will depend on the age of the child. Age will also impact how you approach the situation. Typically most people begin educating their children at the age which they identify different objects. Showing a child money or letting them become familiar with coins and notes will let them know that money has always been in their life.
Similarly to this, other parents begin to Bring money into the child’s life when they feel they can process it. For example, if you go shopping on your child begins to ask for different items, you could then slowly add money into the conversation and so on.
Encourage them to save
To children, money can seem like a parents issue, something which is boring and they do not need to know. But, this is why we recommend you make money fun for them. One way to do this is to encourage your children to save. You could let them decorate an empty old jar and start their journey there. If they save enough money, you could reward them or even help them buy something they have been saving for. This way instead of making money seem boring, you are making it fun.
There are plenty of ways you can turn education into games. One of the nation’s favourites is creating a shop for your child to run. It not only reflects money itself but also a common environment which your child will be visiting as they are growing up. So, why not put your child’s toys on display along with other things they like and hand them some money. They can then take it upon themselves to begin counting money to buy the items they want.
As your child grows up you might find it useful to offer them pocket money. This will give them the freedom to manage a small amount of money by themselves. No matter the amount, they will still be cautious and careful when it comes down to spending it. For help with this, click here to read our post on ‘A parent’s guide to pocket money‘.
There are plenty of more ways which you can teach your kids about money. The Money Advice Service has different resources and activities that you can use and take part in when it comes to growing their knowledge, they could even be more beneficial for you too!