How money savvy are your children? Easy come, easy go is how many children, my own included, view money. As a parent, I am trying to teach them how to become more money savvy. I know what a valuable life lesson it can be not just for now, but into the future.
From an early age they have received money as gifts and I have always encouraged them to save at least some of it. Here are some more simple ways you can help your child become more money savvy.
Help Your Child Become More Money Savvy
Know Where Money Comes From
To learn the value of money, you really need to know how you earn it. From an early age, explain where your household’s money comes from, e.g. “Mum goes to work every day and gets paid at the end of each week/month”.
I introduced pocket money that was tied in with chores, and it has made my children more aware of ‘earning’, rather than just receiving, money. They know that we have to work to get paid, and it has given them an appreciation of where money comes from – and that it can be difficult to come by!
Keep Advice Age Appropriate
Money advice should be kept age appropriate. You don’t want to scare children with talk of bills, debt and what you can’t afford when they are too young to understand. There is a balance to strike between teaching them to be good with money and overwhelming them with information or passing on fears you may have.
You can start by playing with pretend money in a play shop. They have to ‘pay’ to buy goods and, as they get older, do simple calculations when they are the shopkeeper.
As they grow, assigning chores and rewarding with pocket money, as well as getting them to save some of what they receive as gifts and to work towards buying something they really want, are all good ways to encourage your child to be money savvy.
Give Your Child Their Own Account
It is important for children to have their own account. Not only can they keep their money safe, but they can have more responsibility for their spending and saving.
An Post have recently launched their An Post Money Mate account, which is suitable for children aged 7 to 15 years. We love the features it offers, for both parents and kids, including:
- Parent and kids access via the An Post Money app
- Parent can view transactions, set spending limits for in-store, ATM and online use, and transfer funds in (but not out!)
- Contactless Mastercard debit card for in-store and online purchases
- Jobs feature where you can set tasks for your child to earn rewards
- Jars feature so your child can save money and see it building up
- Plus, freeze a card if it’s lost or stolen and use the emergency Jar feature so your child can access money instantly if they need it
T&Cs apply. The An Post Money Mate Debit Mastercard is issued by An Post. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated. A monthly maintenance fee applies. An Post is authorised by the Minister for Finance to provide payment services and is regulated by the Central Bank of Ireland in the provision of such services.
Spend, Earn, Save
With the An Post Money Mate account, your children learn how to earn, save and spend money with their own debit card and app.
Have a Cooling Off Period
Buying shiny new things is always tempting, but is it worth it? We have all had buyer’s regret and our kids are no different. The must-have toy that got 5 minutes of play before interest was lost, or the trendy trainers that actually weren’t that comfy…
Getting your child to save for something, or having them think about it for a period of time rather than rushing into buying, is always a good idea – especially for larger, more expensive purchases.
Impulse buying offers instant gratification, but sometimes the packaging is better than what is inside the box! Help them to not only be more money savvy, but also to be more conscious consumers too.
Lead By Example
The best way to teach your kids to be money savvy is to lead by example. Simple things like meal planning, shopping lists, household budgeting, checking statements and letting them see you put money into a savings account are all good ways to encourage them to follow your lead.
More than anything, make money a regular topic of conversation. Include the whole family in conversations about big spending, such as holidays, and explain that making one choice may limit others.
Give Your Child Responsibility
As they grow, give your child responsibility for their own money. Within reason, allow them to choose what to buy, even if you don’t always agree with it. The lessons learned from buying an item and not really getting the value from it is best learnt while they are young. It will give them an appreciation of savvy spending in later years.
Be there if they have questions, encourage saving and also encourage responsible spending from the sidelines.
Going digital is a great way to encourage your child’s money awareness, especially as you will usually have oversight on the account and can keep track of their spending without them feeling you are checking their every purchase.
About the Author: Michelle
