Remember opening a birthday or Christmas card when you were a kid and the excitement of being gifted cash? The world suddenly felt like your oyster and all you could think about was what you were going to spend it on! Do you ever look back and wish you’d saved all them money you’d been gifted? Or wished you’d made better choices with it? Well, if you have little ones, now is the time to get them into good spending habits and teach them how to manage their own money!
Here you’ll find some helpful tips and ideas of how you can help them make better choices.
Don’t forget to mention debt.
Debt might sound like a scary, extreme and possibly complicated topic that might be better left until they’re older, but letting your children know about the pitfalls and dangers of payday loans and the struggles many people go through each day to pay bills and keep on top of their finances is a lesson worth teaching. You don’t have to frighten them; simply by explaining the importance of paying bills on time and making good choices you can give them a heads-up. It’s also worth mentioning that companies like Credit Fix are there to help people who are struggling with their debts and might need a little bit of help to get back on track.
As adults we always try to save when we shop. Looking for the cheapest deals and researching where we can go to make the biggest saving. Well, why not introduce your child to smart shopping while you’re at it? If your child has money to spend and wants a particular toy or gadget, look through the prices of various stores and online retailers. Comparing prices and going for the cheapest option will make the purchase more worthwhile, and they’ll be really chuffed with the money they have left over!
Show them the cost of everything
All the best things in life are free. But that magazine your child is begging you for, isn’t. When you go shopping, let your child see the price of various items, clearly. If they have money to spend, show them or work out together how much they would have left if they bought it.
If your child is going to buy something, make sure the experience is visual. Give them cash to see and feel and allow them to complete the transaction themselves. They’ll feel grown up and it allows them to visually understand the process of buying/selling; rather than letting them tap the contactless machine with your debit card.
Help them budget
If you child gets an allowance or is rather good at finding spare change down the back of the sofa, then try providing them with more than one clear jar to put their cash into. Each jar could be a saving pot for something different. Then if they get cash, they can budget how much money should go into each pot and toward each cause. Congratulations – they’ve just made their own budget!