Mum can I have this? Are we rich? Why do the kids next door go on more holidays than us?
Talking about money with your kids isn’t easy. And helping them to learn about it can be even more challenging. With research indicating that our spending habits are formed by the time we reach 7, it’s imperative to think about how best we can pass on good money skills that will set your child up for life. Here are our top tips on how to help your kids learn about money in a fun and engaging way:
1) Count coins
Gather lots of coins together with your child (1ps, 2ps, 5ps, 10ps, 20ps, 50ps, £1s, £2s). Build piles of them next to each other to demonstrate their different values, for example five 2ps next to a pile of ten 1ps. This way your child can also understand the common denominations between coins. Ask them to try building their own piles.
2) Go grocery shopping together
Take your child shopping and show them the cost of different items. Involve them in decisions and explain your choices and reasoning. Make sure to bring cash, let them count out the money and hand it over to the cashier so they begin to comprehend the transactional value of money. Ask them to check the change after.
3) Give allowances in exchange for completing chores
Award your child a small amount of money per month for helping out around the house. Teach them that money is earned and not something they should take for granted. Alternatively, for younger children, offer them tokens per chore or task they complete. Once they collect a certain number of tokens they can exchange them for money.
4) Save pennies
Give your child a glass container like a jam jar so they can start saving up their allowance and learn the concept of saving. Using something clear or transparent means the child can see the money increase each week and grasp the value in setting aside money.
5) Go to the bank
Take them to the bank and open up a savings account under their name. This process will help to illustrate the differences between digital and paper currency. Once their savings jar is full, go back to the bank so they can deposit their funds!
6) Teach them the value of giving
Educate your child in the importance of generosity as soon as they start to make a little bit of money. Why not ask them to donate a small amount to a charity, share some money with their sibling or buy a gift for a friend? They’ll quickly learn that giving can be more rewarding than spending.
7) Hold a cake sale for charity
Do some baking with your child and hold a cake sale to raise money for charity. Ask them to set the prices for each item and question their choices. For instance, outline that items possess varying values and the reasons why you may spend more or less on certain things. Allow them to handle and exchange the money with customers too and get them to count how much you’ve raised at the end.
Have you done any of these with your child? Let us know in the comments below!