Today’s world is a scary one where finances are concerned. As parents, you don’t need a news report to tell you that the cost of living is increasing or that energy prices have risen once again. The bills on your counter have already told you.
The latest reports from the world of news tell us that two in five would have to borrow to pay off an unexpected £200 bill due to poor savings figures and it’s hardly surprising given the state of things at present. The problem is that money management isn’t a strong point for everyone and some of us simply lack the knowledge to know what to do when those purse strings start tightening.
There have been numerous proposals to counteract this – including teaching kids financial lessons as part of their core education. Of course, the best and most effective learning is that which is reinforced at home so you’ll need to take some responsibility for teaching your kids about money.
To help, here are a few tips on how to do it. They’re relatively straightforward so you don’t need to worry about your own skills falling short. In fact, you may say it’s as easy as 1, 2, 3.
Make it a game
The world is a playground to your little ones so make money management a game to teach them core lessons. Toy shops complete with produce and tills are popular toys that help children learn how to act in society but why not go one step further with it?
Get the ‘shopowner’ to add up their takings at the end of the day and give each product a ‘buy price’ and a ‘sell price’. Then get your kids to work out how much has been made from each sale so that they can understand how basic finances work.
Help them save
Children often get gifted money for birthdays and other celebrations but rather than letting them blow it all on sweets, why not help them to save it wisely? Give them a small allowance to spend on something they want and then place the rest in a suitable bank account – you’ll want to look at tax and interest rates and sites such as Money Vista can provide more information about the tax on savings to help you.
Keep a book or online tack of your child’s savings and show it to them regularly so that they’re aware of how much money they have. Giving them this glimpse into the world of finance may encourage them to save more to watch the figure grow.
Set a challenge
If budgeting is a primary focus for your family then get the kids involved in cost-cutting measures. Set a challenge and offer them treats or rewards if they find ways to cut costs. You may be surprised at some of the ingenious things they come up with and will be able to slash your regular outgoings while teaching them a key financial lesson at the same time.