My kids are at that age now where they get a regular pocket money every month. They get £1 for every year of their age each month. So Boo gets £12 and Bugs gets £8 and having been doing for a good few years now, this has worked really well for us so far and they both love it when the first of each month comes around and they get their money.
I put Boo’s money directly into her bank account as she has a debit card now and Bugs just has the cash in his wallet, if it starts to build up we discuss this and he decides how much he would like to put into his savings account… but generally he is a spender. I’m hoping that we have taught them well so far and that they are both going to be sensible when it comes to money as they get older. The more we teach the less likely they are to get into debt and need a website like Creditfix to get them out of trouble. I used to be a bit of a spender before I met James but nowadays I’m pretty good with money and hardly ever spend any… I think it is probably down to the fact that I am just content with what I have and I just don’t need things to be happy! I think it takes a certain maturity to realise this.
Here are ten ways you can help your children learn about money and saving…
- Introduce money as early as possible, get them used to paying for things in shops, getting change and checking it.
- Buy them a lovely piggy bank so they can start saving their pennies from a young age. I always found it useful for them to have a goal as to what they wanted to treat themselves too… so they can see that saving pays off. Even if to be begin with it is something small.
- Give a regular pocket money – we don’t pay for chores, they are expected to do those regardless.
- Encourage them to save a portion of their pocket money each month.
- Let them make some bad decisions… hopefully these bad decisions will be instilled for a later date.
- Teach them to make money by letting them hold a garage sale or car boot sale with their old toys or even making cakes or lemonade to sell.
- Involve them in family budgeting even if it is just trying to find the best deal on a tin of beans when you’re doing the weekly shop.
- Teach them to donate and raise money for others. My son was over the moon when he realised that he could get people to sponsor him to raise money for Children with Cancer.
- Make a savings chart so they can keep a record of their savings and see how far off their goal they are.
- Make sure that they realise that money doesn’t grow on trees, it’s so important for them to realise just how hard you work to make money .
I’d love to hear if you have any tips or great ideas about money and children. We are always looking to improve on the way we bring up our kids. I’m thinking about ways to teach more about long term savings, loans and interest so I’d be particularly keen to hear of any ways that you have approached those with your children. Leave a comment below to let me know 🙂
* This is a collaborative post.