Surveys reveal that only 1/3 of parents involve their children in discussions about household finances, give your child a head start by teaching them about money early on.
Many parents are avoiding teaching their children the most valuable lesson they can learn before they fly the nest. But, talking to your children about money needn’t be complicated or difficult.
When life is an endless whirlwind of swimming lessons, SATs and rainy football fields on a Sunday afternoon, it can feel like teaching kids about money isn’t relevant or important. But laying the groundwork early on about managing money could help your children manage their finances responsibly as adults.
Here at Ferratum, we think knowledge is key, so here’s our guide on getting started with talking to your kids about money.
Starting at an early age is a great way to make sure your kids grow up with a responsible attitude towards finances. This can be as simple as using everyday situations to teach your child about economics and finances. In time, you’ll be able to explain more complex things such as saving to buy a house.
An early start is one of the most important things when it comes to helping your child understand finances, as it sets the foundation for how they will handle money in the future.
Have a goal
Kids always have their eye on the next ‘must-have’. Whether that’s the latest pair of trainers, a video game or whatever the latest trend is. So, why not teach your child how to save their own money to purchase some of the items they want?
Explain the cost of the item, and help your child work out how much they will have to save each week and for how long. Not only will this teach about money management, and brush up their maths skills! But your child will appreciate the much longed for item much more knowing how hard they worked to save to get it.
Set up a bank account
Encourage your children to save by depositing all that birthday money and hard-earned pocket money in the bank. This is a great way for children to save up, especially if they will be saving for some time.
There are also some other great ways to help children manage their own money, such as a GoHenry card, that for a small monthly fee, allows you to help your child manage their money with weekly spending limits, savings goals and more.
Finances can be fun
Make use of financial themed games to make teaching kids about money less serious. Games like Monopoly or The Game of Life can make for a great opportunity to teach kids about money.
Your child’s future is the most important investment you’ll ever make, so start today. And don’t stop with the kids! If you could do with some lessons in managing your money, check out Ferratum’s guide on starting a savings fund…
|Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk. Representative example: APR 1270% if borrowing £400 for 4 months. Interest rate: 292% p.a. (fixed). Total amount repayable: £665.48 by four instalments of £166.37. Maximum representative APR: 1604|