Top Tips for Teaching Your Children About Money

Oct 4, 2020 by

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They say that money makes the world go round and there is a lot in that. Learning financial discipline is an essential skill that enables anyone to get ahead in life. For that reason, it is important that we teach our children about the nuances of money. Skills like budgeting will serve them well for the rest of their lives, so to that end, here are some top tips to help teach your kids about money and general finance.

Give Your Children Pocket Money

Giving your kids pocket money has been a common practice for decades. A small amount of money each week can help introduce the concept of money in vs money out. How much pocket money to give is a source of fierce debate, just make sure that it isn’t too much. You can also link receiving pocket money with the completion of a chore as this teaches the principle of working for money. Simply giving your child money each week without needing to work for it, can have the effect of instilling a degree of entitlement in some (but not all) cases and a small job can help your child feel like they have earned their pocket money and feel proud as a result.

Use Technology

The world of smartphones and Apps has helped to simplify and streamline the finances of parents, but did you know that there are plenty of finance apps for kids? These apps help to introduce children to the principles of budgeting and you can even setup their own bank account with some of the apps. The ability to restrict and approved purchases is also a unique factor in helping teach your children about spending and saving sensibly.

Talk about Money

You’ll probably be surprised about how frequently you need to make financial decisions as a household. Anything from planning the weekly food shop, to paying for insurance and filling up the car require you to constantly balance the books. A recent study showed that talking to your kids on a weekly basis about your household spending increased their confidence about financial matters by 32%. We all have to start somewhere and by factoring money and budgeting into the weekly discussion, children will feel more at ease when it comes to their own financial planning.

If you introduce these principles into your household at a young age, we’re sure that you will set your kids on a path to financial independence when the time comes for them to flee the nest. The earlier your start teaching your kids about finance and budgeting, the better.

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