TEACHING KIDS ABOUT MONEY

Financial education has been part of the national curriculum in secondary schools for several years now – but is not compulsory for primary schools.

However, children are capable of and can benefit from learning about needs and wants, saving, delayed gratification, and choices by the age of seven, according to a report.1 Exposure to, and experience of, money and calculations from a young age is also important, said the Money Advice Service study. Campaigners want to see more personal finance taught through the curriculum from a much younger age. Until this happens it’s up to parents to teach children about the value of money, the concept of saving and eventually investing. Here are the ways you can help the youngest members of the family learn about money matters.

Making money a regular topic of discussion is a key step no matter how old your children are. It’s best to start young so it becomes second nature rather than a scary or taboo subject.

Get involved with how they want to spend their pocket money. If they want something more expensive than what they have, help them with how to save for it. For little ones, using a clear money box or jam jar can help them see their savings grow. You might even have more than one box or jar with one for their own spending, but another for buying gifts for family and even a charity one.

For older ones they might be more inclined to save by smartphone using an app for kids. Lots of such apps can arrange regular pocket money transfer, set savings goal, list chores and give them ways to earn extra.

You might consider getting a debit card with parental controls, so your children can learn how to spend money safely on plastic.