When did you get to grips with money? From an early age, or the hard way, by getting stranded penniless at university or abroad?
Education and financial experts believe that teaching children at an early age about the value of money is key to greater financial literacy later in life.
There has been a greater focus on children learning about money recently – something that isn’t a part of the current national curriculum.
And it seems that learning about money has a greater impact on the family as a whole.
Learning about the different types of mortgage deals, taxes and interest rates are things that are sprung on young adults as soon as they find independence – and can be a huge shock to the system.
Incorporating these lessons into school time can not only play an important part in the maths curriculum but will benefit the future lives of generations of children – and their families.
Lifesavers is a financial education programme that operates in schools. It is managed by the charity Young Enterprise. The programme offers parents teaching resources in order that they can get to grips with the complicated world of finance, cash flow and saving.
So what other ways can you help your children handle money? Here are some tips that might make the difference to their financial well being in years to come.
Talk about money early
According to ThisisMoney.co.uk, research carried out by the University of Cambridge shows that children’s financial habits are formed early – around the age of seven.
Get your kids to earn their pocket money
While most kids are given money, research indicates that only 15 per cent are encouraged to actually earn it. Washing the car, doing household chores and keeping their rooms clean can all be all jobs that children need to fulfil to earn their weekly spends.
Set a money goal together
If there is one successful way of saving, it is to set a goal with your children. If they really want a Lego set or a pair of trainers, work out a savings plan with their pocket money. You could even offer to share the cost if they save up to a certain amount by a certain date. This will teach them focus, patience and restraint – as well as the satisfaction of finally reaching their goal.
Teach them the Rainy Day philosophy
Not all saving should have an end-goal in sight. Sometimes, saving for a rainy day is a good idea – for those unexpected events that can happen in the real world. If they lose their beloved toy or want to buy a present for a family member – they may need some hard cash to cover the cost. Having a little bit set aside is a great lesson for adult life. You can help them achieve this by opening up a building society account and doing regular checks with them of their bank balance and any interest that has occurred.