We’ll post a series of 3 articles from our maths teacher, Mr Lambert who suggests top tips to help teach your kids to be money-savvy. The first post is about saving and spending. Let's get started!
Learning how to manage your own money as a child is a key skill that will stand you in good stead forever. The best start to enable your child manage their money is to give them responsibility.
Set up a bank account
What better way to do this than open a bank account for them. However, how you use the account is really key. Two main questions tend to arise at this point – what money goes into the account and what are they now expected to do with that money?
I would heartily recommend a basic amount of pocket money that can be supplemented upon completion of certain tasks such as clearing the table, completing homework without being asked or being kind to siblings. Once the money starts to go into the account, this would be a great time to talk about how much your child is intending to spend or save.
Learning to save up for something that they really want and delaying gratification has long been associated with greater success in later life as evidenced by the classic Stanford Marshmallow Experiment. Your child will never forget the first time that they bought something with their own money – even more so when they’d had the discipline to save up over a period of time.
Also, you will need to be clear about what they now have to pay for, e.g. presents for friends, social travel, etc. This will obviously depend on age, location and individual circumstances. Hopefully, controlling this small budget will allow your child to start understanding the difference between wants and needs and enable them to develop their sense of money responsibility that is essential for a stable economic future.
Here’s a great way to teach your kids about money. Keep them busy and entertained with our free Financial Education Quiz and toolkit. Let's get started!