Teaching your children about money
Teaching your children about money will help them pick up good habits for the future. We have pulled together some helpful steps so you can show your children how to make smart money decisions:
Step 1- Keep it fun
A great way to help children get started is to have three jars with the following labels:
● Spending – for buying something now.
● Savings – for a saving goal – such as a toy, book or sports jersey. Explain why it is important to save. Help them work out the cost of the item they are saving for and how long it would take to save for it, based on how much pocket money they get.
● Future – this is money that is put away and can’t be touched until an agreed time in the future, such as summer holidays. Teaching your child to put a little away for a rainy day is a good way for them to be prepared for what might happen in the future.
Every time your child receives money they can decide how much they would like to put into each jar. Over time your child will begin to understand how to manage money and will be ready for the next step, opening their own savings account.