Teaching My Children Money Management

Money management and kids: two words that don’t go so naturally together.

As a child, I wasn’t much good with money. I was paid to do jobs around the house – lawn mowing, car washing, that kind of thing – and had my first job at 14. But as soon as there was money in my pocket I spent it, mostly on Topshop Baxters and copies of MIZZ magazine (RIP). It took a couple of iffy credit situations in my twenties (Topshop store card again-that place was always getting me in to trouble!) to learn how to manage my money correctly.

It’s only now I’m in my thirties that I truly feel I’ve got a hang on how to manage my cash. Yes, I use credit, but it’s only been as a means to an end; building up my credit score so I can apply for a mortgage in the next couple of years. Now, I have even built up the most magical thing in the world – savings! Something I’ve never had previously, but it gives me so much joy as I see the numbers in my ISA racking up. Who’d have thought it, huh? And these are all lessons I’m trying to pass on to my kids, as I think teaching children money management is so important. I want to give them an insight into how finances work, even at their early age. Elfie often asks how much things cost and I encourage her to – and if she ever says, “wow! That’s expensive!” I relate the money I earn at work back to being able to buy things. Simples (I hope).

Shepherds Friendly has created an infographic which is a parent’s guide on how to teach children about money. It is broken down into three different age groups of children and has two lessons for each age group on how parents can teach their children valuable financial lessons in day-to-day life. I’m happy to see I’m already employing these tactics – pocket money, encouraging saving with a junior ISA etc. The guide is a great resource for anyone seeking to teach their kids the basics of managing money. You can take a look at it below and tell me how do you encourage your kids to learn about money management?

 

1 Comment
  1. Great article! I love taking my kids to shopping with me and I always explain to them why I choose to buy one item over another. I want to explain the basics of judging products on quality, and value for money. You can also ask kids to evaluate how much they spend on necessities (food, bills) and what can be done to reduce the costs.

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