Understanding the value of money, saving and budgeting are essential life skills to teach your children. Research from Foresters Friendly Society, a mutual savings provider, shows that 77% of teenagers say they learn more about money from their parents than anywhere else.*
Teaching your child the value of saving over spending can be a daunting task for any parent. So the team at Foresters Friendly Society has come up with five easy ways to start…
- Invest in your child’s future
Lead by example and make the most of tax-efficient savings by opening an ISA and making regular payments into it. ISAs can be a great way of saving up to help with your child’s future education or to help them get a foot on the property ladder. Foresters Friendly Society understands that reaching savings goals can be one of the most rewarding achievements for families and offers a range of savings options for all your family’s needs, depending on how much you want to save and how long you want to save for.
- Reward your child for helping out
Receiving pocket money is so much more rewarding if your child has earned it. Set them tasks every week such as making their bed, setting the table, or tidying their toys away and pay pocket money in return for completing them. Encourage your child to set their own savings goal and not spend their pocket money straight away.
- Start a family savings jar
Sit down as a family and agree on an achievable savings goal – something you can all enjoy together. Think holiday spending money, a trip to the seaside, or tickets to a concert or sporting event. Place the jar or container somewhere prominent to serve as a constant reminder to save. Even better, glue the lid shut so nobody can dip into the jar until it’s completely full! When you’ve reached the top, share the fun by counting your savings together and talk about how it feels to have reached your goal.
- Educate kids in the art of budgeting
Involving your child in budgeting for household projects, such as decorating their own bedroom, can help to teach them the importance of planning and sticking to a budget. Help them to decide how much paint and what tools they’ll need, and get them to track the spending against the budget. If there’s any money left at the end of the project, they can even put it in their own piggy bank!
- Teach children to become savvy shoppers
As they get older, ask for your child’s help to choose the best deal when shopping online and in the supermarket. They’ll soon pick up the habit and start to do this for themselves. On their birthday, you could even take them shopping and give them a set amount of money to choose one present and pay for it. It’s a great way to get them making their own financial decisions. If they choose not to spend it all, encourage them to save the change, or better still, put it in your family savings jar.
Teaching your children from an early age how to save is not only a great way to help secure their financial future, it also gives them financial responsibility for when they finally have to manage their own money.
Foresters Friendly Society has been helping with family finances since 1834 and offers a range of financial products that are simple, flexible and affordable. They don’t believe in the hard sell, but instead explain what each product is, how it works and why it could be right for you.
* The Foresters Saving for Children Survey was carried out in November 2014 among 310 parents and grandparents, and 427 16 – 18 year olds.