Money Management

Managing money is an important life skill and is rarely taught in schools, so if you don’t teach your children, they will learn about money in other ways. Your child may receive money from you in the form of pocket money, an allowance or payment for chores, they may have a part-time job, or they may earn their own money online, whichever it, it is important to teach them how to look after their money and be a savvy shopper and saver. You may have already discussed how to save money with your child when they were younger, and this is an important lesson, but equally as important is how to spend their money. How to save If your child has a bank account, then make sure there is an easy way for them to save through that account or set up a separate savings account, so it is visible to them.

Your child may have a particular goal in mind, which can make the idea of saving easier or you may want to encourage them to save for a rainy day or a bigger purchase in the future.

If they haven’t been much of a saver before, or they haven’t had access to money previously, then introduce them to the idea of saving a fixed percentage of their income each week or month.

If they put say 25% of their money into their saving space or account as soon as they receive it, then hopefully it will become a habit.

The best incentive of saving is being able to watch their money grow and if they are saving for something specific, then edging closer to that amount each month will help encourage them to continue saving. How to spen.

When children are young and don’t really have access to their own money, it’s amazing how quickly they can spend your money, can I have this? or I need that, etc.

Once your child starts receiving an allowance or earning their own money and the responsibility falls on them, it’s amazing how quickly they can learn the value of money and start to make more informed choices when spending money.

Teaching your child how to spend their money is also a good idea, help them find good deals when buying, particularly if they are wanting to make a large purchase. Get them to look into deals online as well as instore, and look out for sales throughout the year, helping them to make more informed purchases. How to giv.

Another valuable lesson which can be taught while your child is young, is giving.

If giving to charity is something you would like to instil into your children, then now is a great time for them to learn.

Like saving, suggest a % of their money to give to a charity of their choice and help them understand what that money can do for that charity.

There are some great banking apps that can make it easy for your child to give to charity or they could back something close to their heart on justgiving.com.

Source: https://www.forbes.com/advisor/personal-finance/how-to-teach-your-kids-good-money-habits.

https://www.moneysupermarket.com/savings/junior-isas/

Managing money is an important life skill and is rarely taught in schools, so if you don’t teach your children, they will learn about money