Wednesday, 7 October 2015

Money Matters - Teaching your little ones how to be responsible with money

When your little ones are running around playing, learning, and exploring, teaching them how to be responsible with money probably isn’t the first thing on your mind – after all, they’re only young, there’s plenty of time to learn about boring things like finances, right?

But the fact is, children develop most of the attitudes towards money in their early years, which is why it’s so important that you start instilling good values from an early age. Trust me, the sooner the better!

It might seem like a daunting task, but there are so many ways you can make it a fun, exciting, and hopefully, super successful process.

Here are some top tips that I’ll definitely be trying out….

Take them shopping

It may sound less than appealing, but taking your little ones shopping with you, will help to teach them some valuable lessons about money, budgeting and spending. Start off by taking them to the cashpoint with you, explain that the money coming out of the wall isn’t from some magical, endless money tree, but is actually coming out of your bank account. Then, as you go around the shops, explain why you’re buying the things you’re buying, and point out things that you would like to buy but can’t quite afford just yet or don’t need. Engaging with your child will not only open their eyes to the world of finances, but it will also allow you to spend some quality time with them too!

Credit

As your little ones start to grow, it’s time to introduce them to the concept of credit and, perhaps most importantly, the importance of making wise financial choices. A good way to do this is to get up your own credit report using a service such as Experian, and talk them through it. Explain how their decisions at 18 or 19, will affect their credit rating for years to come.

Pocket money

Pocket money can be a source of stress and tension in many households. Whilst you should absolutely never feel pressured to give your child an allowance if you can’t afford it, if you can afford to give them something every week or month, however small it may be, this will really help them to learn lessons about saving, budgeting, and spending. Set up a bank account for your child and encourage them to save at least some of their money towards something they really want. This is also a great opportunity to introduce the concept of working to earn – simply outline some chores or tasks that they must compete in order to earn their pocket money (nothing too taxing, of course!).

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