Adopting a responsible attitude towards money starts at home. You don’t just need to teach your little ones to understand what money is, but also to help them make sensible decisions. If you’re sometimes a bit clueless about money yourself, then you can find out more here. Once you’re more knowledgeable yourself, you can then use these ideas, encouraging children to be responsible with money.
Play money-related games
Board games like Monopoly can be great for teaching children all about money and life. It’s a safe environment to make mistakes in and lose everything, as it’s not real but operates by real-life rules.
You can turn a weekly routine into a lesson by taking the kids shopping. Tell them how much you have to spend and get them to try to get everything on the list and still come in under budget. Encourage them to compare brand prices, look for two-for-one offers and to cut out coupons, as well as looking in the reduced aisles.
Give pocket money
Whether this money is earned or given, make sure your children know that it’s theirs to manage and that once it’s gone, there’s no more until next week Encourage them to divide their money up into piles – one for spending and one for saving. If they decide to spend all of their money, it’s better that they do it while you’re still feeding them. Even if your children only manage to save a few pence a week, it’s something and they can see their savings grow.
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Open bank accounts
Once your children realise that money can be made to grow with interest, they’ll be quite keen to add to their balance! Allow your children to learn about not only the benefits of saving but also how the interest rate will affect them if they were to use overdrafts when they are older.
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Teach them about credit and debit cards
Younger children think that credit cards and ATM machines are endlessly benevolent inventions that just allow grown-ups to magic money out of a wall and pay for things with no consequence. Make sure that your little ones understand that the money in the machine is already yours and that this is where they access the money that they too have saved or earned.
Be the example you want to set
Don’t lie to your partner about getting those shoes on sale, resist impulse purchases, save a few pounds, look for cheaper alternatives and emphasise how the really good things in life – family, friends, health and nature – don’t cost a penny.
Cultivate generosity and charity
If you have money and you’re able to save some, then you may decide to give some to those less fortunate. Not only does giving to charity make you appreciate what you have, but it also makes children feel that they’re making a real difference to the world.
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*This is a collaborative guest post*