Our finances are something that we must learn to manage. Without proper money organization skills, we can find that we’re spending more than we need to and it can run out fast. This may leave people struggling to get by in times of hardship like the current cost-of-living crisis.
With so much importance being put on money, it stands to reason that we humans should be more informed about how to better manage it – and one of the easiest ways to do that is to start the education as a child. Currently, only four in 10 children and young people say they’ve had some financial education at school, which leaves a huge proportion of young people in the UK without the vital information they need.
If your child is one of those not being educated about money at school, why not make plans to inform them about their finances? You could set aside some time out of your week and teach your children vital tips and advice about money.
Not sure how? This guide can help. Read on and find out the best ways to educate your kids about money.
Money can be an abstract concept to even the most educated adult, so trying to explain it to a child requires reframing and a unique look. Start with things like saving pocket money for toys, sweets or activities and they’ll see that if you save your money then eventually you can buy even better things!
Get them involved
Introducing your children to real-life financial situations can help them get a better grasp on what money is and its true value. Take them shopping and get them to look at price tags for products they know, so they have something to relate to. You may also take them along to the bank with you, so future visits will be a familiar experience rather than a scary one.
Teach them more complex systems
As much as we’d love money management to be as simple as saving, there are more complex issues that your child must learn about. We recommend waiting until they’re in their teens before you start teaching them these, however.
This includes features like online banking, investments and the importance of a good credit score and how they can boost it. Gradually introduce these ideas as they get older so that they’re fully prepared by the time they leave home.
Make it fun
Although teaching them about financial responsibility is important, having them see you stress over debt payments or financial problems won’t help put your child on the right path. Make sure you’re able to make money management a light topic as they’re growing up and separate your own financial problems from the things you’re teaching them.