Teach your kids to manage their money with these 3 simple steps

Aug 22, 2019 by

Money isn’t necessarily something that is taught or talked about in every school, and so it’s important as a parent to make sure that you’re doing all you can to make sure your child knows the do’s and don’ts when it comes to spending. 

Planting the financial seed in your child’s head from a young age will not only help to ensure that they are more helpful and thankful, but it will give them a better chance of success going forward as they flourish into a career. Looking for some inspiration, as a jump-off point, take a look at these three simple tips.

Start off small

As the saying goes, if you take care of the pennies, the pounds take care of themselves. You could start educating your children on the value of money by allocating them small amounts, you should also try to introduce them to the concept from a young age.

Simple gestures, such as buying your child a colourful piggy bank to get them started on their financial journey, will prove to be a memorable milestone for them. Not only will it teach them to be patient with accumulating funds in anticipation of buying something they want, but they will also learn to contextualise how much things cost and how much you spend on them.

Get smart

Studies show that 80% of children and teenagers are glued to their smartphone screens in the modern day, and those that spend five hours or more a day on electronic devices are 51% more likely to get under seven hours of sleep. The sentiment is also true of the general public, as it is said that 41% of all adults check their phone a few times each hour.

This growing technology trend might seem to so why not try to use this to our advantage where possible? There are a ton of apps out there to help you and your child invest/save your money, allowing you to inject money saving and learning into screen time.

GoHenry is a good example of an app where you can allocate your children money straight through the phone and limit their spending. Not only is this a great way of getting your child started on a debit card early, affording them a level of independence that they will surely thank you for whilst allowing them to learn how to use this for payments, but it gives you control over their spending and allows you to see what they’re spending on. Of course, it’s also important that you establish trust between you and your child and eventually shouldn’t have to repeatedly monitor what they’re doing like some sort of dystopian overlord, but it’s a good place to start.

Investing for your child’s future

Thinking of building your child some savings or assets for the future? Property investment experts such as RW Invest, who specialise in investment in North-western cities such as Liverpool and Manchester, are a great way to get started if you have the capital and are wanting to invest in the property market to provide your child with a tangible asset in their portfolio when they mature. Experts can give you the best advice possible to ensure that you’re making the right decision on both the area that you’re thinking of investing in, and type of property/amount you intent to purchase. 

In terms of advice for first-time investors, try to analyse the prospective market in the UK and figure out which muight be the best area for you, and which might be the best area for your child to inherit. As with any other type of investment there is always a risk involved, but by looking at estimations and market projections for the future, you may be able to gauge where is the most suitable (and, of course, profitable) for a long-term investment.

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