Helping children learn about money is one of the most valuable life skills you can give them. Understanding how to manage money from an early age can set them up for a strong start in life, building habits that lead to financial stability in the future.
Below we’re sharing some practical tips you can use when teaching your children about money:
1. Start early
It’s never too early to start! Even young children can grasp basic concepts like saving, spending, and sharing. Use play money, toys, or games to introduce them to these ideas.
2. Set a good example
Children learn by watching and getting involved. Let them see you handling money. If you budget, save and make wise spending choices, they’re likely to follow in your footsteps.
3. Use pocket money to teach budgeting skills
Giving your children a small amount of pocket money can teach them the skills to manage it. Teach them to divide it into categories such as saving, spending and giving. By encouraging them to save a portion for future occasions, you’ll be setting a good foundation.
4. Make saving fun
Set a savings goal and reward your children for reaching milestones. You could use saving envelopes where they can tick off once they’ve filled each envelope. You could also open a savings account for them and, if there’s an app available, check it together to track their progress and celebrate growth.
5. Talk about needs vs. wants
Explore the difference between needs (things such as food, housing and clothes) and wants (things such as toys, games and days out). Learning how to prioritise needs before wants is a vital life skill and will help them make better financial decisions as they grow.
6. Teach the value of earning
Encouraging your children to take on small jobs to earn money, such as household chores or helping family and friends, is a great way to teach responsibility and the link between effort and reward.
7. Talk about money
Let your children ask you questions about money and offer simple answers using the opportunity to teach where appropriate. Money can be a cause of stress for many, especially if you’re struggling with debt, and talking about it can be hard. However, children learn very little about money during school, so it’s important to equip them with the skills they need at home. When they’re old enough to understand, opening up about debt and how hard some people struggle can be beneficial. By helping children as they get older learn how to manage credit and how easy it can be to fall into debt, if they take out more credit than they can repay. You can teach them how easy it can be to fall into financial trouble, especially when they take on more credit than they can repay. As they grow older, showing them how to manage credit responsibly helps them make smarter financial choices and avoid common pitfalls.
Teaching children the basics of money management early on equips children with a skill that will serve them throughout their lifetime and encourage them to pass those skills on to the next generation.
What you can do next
If you are struggling with debts call us on 0800 072 1206. We’re open from 8am – 8pm Monday to Friday and 9am – 3pm on Saturdays.
Alternatively, you can visit our www.payplan.com/police to speak to us via live chat or for more information.
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