How to Teach Your Children About Money
Teaching children about the right thing to do in life is hard at the best of times, but when it comes to finance, the problem becomes ten-fold. If you have ever wondered what to teach your child about money, and at what age to broach the subject, take a look at our handy hints and tips below. No matter how old your child is you can introduce them to money in fun and interactive ways!
Children aged under-5
The sooner you learn something, the better your understanding will be. The same goes for money and your children. In order to familiarise your child with money, you show them the different designs, shapes and colours of coins and notes. The act of playing shop with your child is the perfect basis for learning about the use of money, while adding elements of maths such as counting, adding and subtraction. You can also introduce the concept of saving by giving your child a piggy bank or moneybox.
Children aged 5-7
Now that your child is a bit older, this is an ideal time to get them involved with using money in shops. Allow them to buy and pay for items in shops so that they know how and when money is used. At this age you can start teaching your child about budgeting. If you go on holiday and your child has a particular amount of spending money, you can assist in their understanding of how to make money last and the consequences of spending all of your money at once. This not only provides interaction with your child and money but also lays the foundations for concepts that can be explored, as they grow older.
Children aged 7-11
As children get older, you can help your child investigate ways in which they can save money such as Savings Accounts and Trust Funds. Children born from the 1st September 2002 could have a Child Trust Fund, which acts as a youth Savings Account, and when children reach the age of 18 they can receive the proceeds. Pocket money is a great tool in helping your child to learn and understand the fundamentals of money, such as making decisions and saving. Pocket money can also teach your child about responsibility, especially if it is given as a reward for tasks or chores.
As children get older, they will become curious about other ways of spending. Ensure that they are familiar about the different ways you can shop from stores to buying online. Learning about the Internet will help keep your child safe online. You can teach them about passwords, spam emails, personal information and secure URL’s.
