I truly believe that a sound financial education starts young.
It is very important that children learn to be responsible about money learn the value of money and good attitudes to money as they grow and develop. Childhood is a key time to teach them to manage money responsibly before it really matters.
Here are my five top tips:
1. Children copy what you do far more than what you say so good role modelling of money management is key. Let them see you consider purchases, choose bargains, shop around, put savings to one side and check your accounts regularly. talk about why you are doing such things with them and let them see you do it. Let them see you plan shopping trips, cost out a party, add up and organise your change and receipts…be transparent about the importance of keeping your money in order.
2. Encourage them to save from a very early age …even if it is just 10% of their birthday money. Let them se it build up in their separate piggy bank and be proud of their savings
3. It is a bit British not to discuss money but it is not a particularly healthy or useful attitude. Do talk about money with children so as young adults they will feel they can talk to you about money and hopefully this will enable healthy advice and support around personal finances.
4. Foster a saving up approach in your home so children realise if they save 3 weeks pocket money they can buy that toy they want rather than blowing the cash they have as soon as it comes in. Helping them work out a plan, booking in time to purchase the wanted item, praising their efforts all help. As again does a good bit of role modelling.
5, Organise a bank account for your children where they can safely store their money and watch it grow. There are some great bank accounts for Under 19’s that provide debit cards. weekly text alerts as to bank balances. This will encourage them to keep tabs on their money young and to manage cards and accounts whilst you can still keep a keen supervisory eye on them.
Hope these tips are useful!