Do you talk to your children about money?

Love it or hate it, money is an essential part of our lives; we can’t live without it so we do need to understand it.

Indeed, being money-savvy or financially aware is one of the most important life skills we can possess; no other set of skills better guarantees personal wellbeing and freedom.

Many teens in the UK, however, enter their adult lives with little or no basic financial literacy. It’s just assumed that children will learn these life skills as we did — along the way. But this means that many children will have to learn about money the hard way, and often too late.

Observing how parents manage money is not always the best way for children to learn about money. Family situations and dynamics vary considerably. Financially ‘wealthy’’ parents may use money as a means to control or to placate their children. Their children may grow up with a sense that money is easily available and can be used to influence others. Poorer families, on the other hand, may focus on the hardships their lack of money inflicts on their family. Their children may develop a fear of ‘not having enough’ and carry with them into adult life, underlying anxiety

These examples, at opposite ends of the wealth spectrum, share one thing in common, a negative relationship with money. This is just one of the reasons why it’s so important that our children understand about the various relationships people have with money and are equipped to form their own individual relationship with money.

Too many parents fail to consider the importance of financial awareness for their children and may feel that it is best left to others, but teaching children about money, if done around adolescence can make all the difference to their futures.

Half of Brits wish they had received more money advice at a younger age, a figure which this rises to two-thirds for those aged 18–34.

Raising our children’s financial awareness can help them to avoid money struggles later in life by arming them with the knowledge and tools they need to begin, for example, appreciating and understanding the difference between their wants and there needs. Understanding the importance of budgeting and recognising the value of saving for the pleasurable thngs but also the rainy days, gives children a real grasp of money, helping them to take charge of their financial future. It is not terribly hard to get teenagers interested in making and managing money either.

25% of UK adults wish they had been taught more about investment and budgeting while almost one in five wished they had received more advice about the different savings options available to them.

Camp Evolution’s Financial Awareness Workshops are designed specifically for 9 to 14-year-olds and take the burden off you, if you are not comfortable having ‘the money talk’ with your children. Our workshops are also ideal for parents who want to ensure that their children are equipped with the knowledge and skills necessary to begin forming a healthy relationship with money.

Find out about our next Financial Awareness Workshop

References


Chartered Institute of Personnel and Development (2017). From ‘inadequate’ to ‘outstanding’: making the UK’s skills system world class. Policy Report. London: CIPD.

Little, S. (2017). One in five Brits have no savings. [online] The Money Pages. Available at: http://www.themoneypages.com/saving-banking/one-in-five-brits-have-no-savings/ [Accessed 18 Apr. 2017]

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