Friday, 20 March 2015

The Value of Money: Talking to Children about Money

Is it OK to talk to children about money? 

When do children start developing money habits 
and who influences them? 

How much pocket money should a child receive? 

A Mum in London
Image via
Money is never an easy conversational subject, 
especially with children, 
as demonstrated by a recent research 
by Money Advice Service, 
a government backed organisation 
offering people free & impartial money advice. 

In the research, 58% of parents admit 
struggling to talk to their children about money, 
even though they recognise the importance of doing so. 

One of the main reasons behind that 
is that children should not have to worry about money. 

But leaving this important discussion until too late 
can impede the development of budgeting & saving skills. 

Thanks to the research, we now know that children 
start developing money habits by age of seven; 
receiving a reasonable amount of pocket money at regular intervals 
helps children understand how to manage money.

Child psychologist Dr Elizabeth Kilbey offers five tips 
on talking money with children:

1. Subtly integrate it into the child’s life: 
when you go shopping, let your child make a choice between two items 
so they understand they can’t have it all.

2. It’s never too young to start:
Children shouldn’t have to worry about family finances, 
but you can help them understand money without doing this.

3. Be confident. 

4. Have a go
Money is a very practical subject and children can be very hands on learners. 
Find ways for your children to handle and use money whenever possible 
and having pocket money can be a great way of doing this. 
In younger children, role play can be used, 
for example playing ‘shop’ using pretend money. 

5. It’s OK to make a few mistakes: 
It's how we all learn.
It's far better for children to be making mistakes with little or no consequences 
than them facing bigger money issues when they are older. 

~ ~ ~

You can read more about this very interesting research 
and get advice about budgeting and money management 
at the Money Advice Service website 
or watch the online videos for more advice.

2 comments:

  1. We were talking about this the other day, children really need to be taught about certain financial things before they get to the stage where it's all too easy to get into debt...

    ReplyDelete
    Replies
    1. Yes, it's such an important aspect of life and children should be taught about money and its value.

      Delete

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