As children, our parents and families took on the responsibility of teaching us what we needed to know to prepare us for our future, and adult lives the best they could.
Parents teach us valuable life lessons and their habits and behaviours shape our perception about things. So whether they’re teaching us lessons such as tying our shoelaces, minding our p’s and q’s and even how we deal with our finances - all families and parents play a valuable role in shaping the next generation.
You may not have already thought about it, but the way you spend and save money - setting a positive example for your children - as well as providing a little bit of financial independence could help to stand your children in good stead for dealing with their finances in the future.
So if you want to give your children a bit of financial independence and help them manage their money responsibly - we have a few great money lessons and tips to help you to do just that!
1. Get them to help you around the house
It’s an important life lesson to learn - earning money, not only being given it. Whether you’re rewarding them for their excellent behaviour such as doing their homework or going to bed on time or for completing chores around the house, it helps children to earn their pocket money for them to realise not only its value but also that good behaviour pays off.
If you want an easy way to track chores, pocket money and your child’s spending, then why not consider a RoosterMoney account. RoosterMoney allows children to start learning good financial habits early by earning stars, tracking chores and interest as well as tracking virtual money with the added bonus of a Rooster card!
Register today to get started for free!
2. Always use the 48-hour rule before making any purchases
Discourage impulse buys and spending and get your children to consider their purchases before they go through and carry out their transaction. Kids can sometimes want things for fleeting moments before toys, sweets and even clothes are left discarded and forgotten about - so make them wait 48 hours to consider purchases before they make them.
3. Give them the responsibility for their own card
Giving children their own amount of financial responsibility can sometimes sound pretty scary, but it needn’t have to be with a GoHenry card. Instead, you’ll have complete control over where, when and how much your child spends, as well as being able to suspend their card if it is misplaced or it is stolen.
With GoHenry children can have their own bit of independence with a prepaid card you top up - so there’s no need to worry about them getting in over their heads with any overdrafts or fees. They can also earn money by completing chores and tasks set out by you at home to make their pocket money.
So why not make them better at managing their own money while you’re still in control?
4. Set a good example yourself
Most of the learning that your children do is at home, not only at school, therefore it’s essential that you set a good example yourself with how you use money if you want it to rub off on your kids. Try to avoid things such as impulse buys, never putting any money away for rainy days or borrowing more money than you can afford to pay back.
5. Don’t subsidise them if they spend all their money
As hard as it may be, if your children spend all of their money and have nothing to show for it - don’t be tempted to give them more to spend until they’ve earned it or it’s allowance or pocket money day. If children believe that there will always be a constant supply of money - they may be more frivolous and impulsive when it comes to spending money. Instead, let them earn money if they need extra or have them wait until there next ‘payday’.
6. Get them to save for larger purchases or a long-term goal
We all like to have goals to work towards, in many cases, it’s what gives us drive and ambition to do something, and it can be the same with children. Toys, games and devices can be costly nowadays, so if your child wants something that is slightly out of their price range - encourage them to save or contribute some of the costs.
So however you decide to teach your children about money, whether it’s through financial responsibility, setting a good example or allowing them to earn their own money around the house, having a healthy attitude towards money is vital for preparing your children for their futures.
We collected open banking data to look at the way UK spending habits and priorities changed during the course of the lockdown. Discover more data insights with Fablious.…Read More
We collected open banking data to look at the way users in the UK have been using retail finance in the pandemic. Explore more insights with Fablious.…Read More
We collected open banking data to look at the way we as a nation have been keeping ourselves entertained during the pandemic and why we're spending money on these things in particular.…Read More