There is no doubt that teaching children about money is a vital step in preparing children for adult life. According to Shepherds Friendly, 94% of parents say that saving money is important to them, however only 25% regularly discuss the importance of money management and savings with their children. This suggests that many parents do not know where to start when it comes to educating their little ones on how to understand different money matters and with little being taught at schools on practical financial knowledge they will need for everyday living, it highlights the need for parents to teach children about financial matters.
Shepherds Friendly have created a step-by-step guide that aims to help parents by suggesting ways you can teach children about money right from giving them their first allowance payment as a toddler right through to getting their heads around mortgages.
They suggest that you can start teaching your child about how money works from as little as 3 years old by helping them understand the different between wants and needs as well as the importance of saving by understand if there is something they want that costs more than their allowance then they will need to ensure they save their allowance so they can afford it.
Shepherds Friendly have a range of child savings plans, a popular saving plan of Shepherds Friendly Society is the Junior ISA which is a great way to teach children about saving.
Do you have any tips on how to teach children money?
My boys have to do chores around the house to earn their pocket money, it really is so important to teach them the value of money and they have areal sense of achievement when they earn it 🙂
Stevie x
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