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.
Go shopping
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.
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.
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.
*This is a collaborative post*
This is really good advice. My children get some money for helping with chores but they don’t have regular pocket money and I’ve never looked into opening bank accounts for them.
I quite agree that children should learn the value of money from an early age. There is some very good advice here. Thank you.
This is something that I think is so important to teach children from an early age. Great ideas!
It’s very important to teach children the importance of managing money.
I always try to teach my kids to be good with money, thanks for the great advice, I will be putting some of it in to practice
Great article thanks for the tips I’ll certainly be putting these into practice and Happy New Year to you
My teen used to waste her pocket money until I opened her a bank account and paid it directly into that. Now she is a saver. She knows she can spend it online and is now saving for some trainers which I won’t buy her becuase I think they are too expensive.
It’s funny that you say that about debit cards. My girls used to think there was an endless supply of money in the cash machine. It’s only since they got older they realised that we have to earn it. (well my fella does) x
Great blog xx My children encourage my grandchildren to save some of their pocket money each week and I like to encourage them by saving all my change in a big bottle and each time they come to stay they like to add it up to see how much is there. Once it is full, I cash it in and it pays for a great family day out xx
Lots of great ideas to follow to help set good behaviours relating to money
I work hard to teach my kids to be responsible. They’re very scrupulous with their pocket money and know when and how to use it. They hate wasting their money because they know they have to wait to earn it again. Some good tips here x #MMBC
We don’t give pocket money yet but I’ve been wondering if we should start doing it – what you say makes sense! #MMBC
I always gave my children pocket money and taught them to spend and save within their mean. Great ideas in blog – makes the world of difference to get kids used to the workings of money.
This is so important – I don’t remember being taught this kind of thing when I was younger
I’ve always tried to teach my daughter the value of money. I teach in a secondary school and some children think that £10 is nothing. If she really wants to buy something she does save up her pocket money for it. I’m thinking of introducing chores this year though. I just hope it goes well.
very important that children grow up knowing hoe to budget and not to overspend!
Emotional and financial intelligence are every bit as important as intellectual intelligence. Being the example you want to set is my number one on the list.
Some good advice on teaching real world skills
If my son wants something we try to make him save for it. We encourage him to sell his old toys to raise money for new.
I try to teach my son about money…currently he’s angry at me for spending all of his money at the bank!! lol
great round up of how to help children be responsible with money
We’ve had lots of discussions about our children learning the value of money – we do give pocket money but we haven’t explored the bank account idea yet … definitely one to think about.
This is such good advice and I think it’s an important lesson for kids (and adults) to learn. Really great round up!
There are some great ideas here. I take the children shopping and we do this anyway. It’s good to show them the importance of money as soon as they are able to understand a little
This is fab advice. I think it’s really important that kids learn about money young but that might also mean that some adults need educating about money also. It’s a really important skill that a lot of people don’t seem to have. I also think it’s important to be open about money, it’s not a shameful or taboo subject.