How do I teach my children the value of money? With the increase of tuition fees and the housing market in decline, teaching your children the value of money is a necessity. Although as a parent, naturally you will try to save as much money as you can afford for the future of your children, essentially the most important thing is that you pass on as much valuable information about the importance of child savings accounts. Ask your child what they wish to do when they grow up. Do they need a degree to do that? Explain that going to university will cost money, and that it is important that they save their pocket money in order to do what they want when they grow up. Perhaps they want to go abroad or on lots of holidays. Explain to them how much this would cost them and that it will not be possible without saving. Teaching by example One of the most influential factors that encourage children savings is teaching by example, specifically teaching by the example you set as their parents. Investing in a Junior ISA can begin the saving process for your child from an incredibly young age. When the management of the account is passed on to your child at the young age of 16 they are already in charge of their own savings. Although the funds cannot be removed until they are 18, being put in charge of this account will allow them to become aware of the saving process that is already happening. Asking your children for a small amount of their pocket or birthday money to put into their savings account is also a good way to encourage them to save in the future. Explaining that if they allow you to invest it, they will eventually receive more money back in the future, a great incentive to begin saving. Explaining how interest works and helping them to see the benefits of saving will also encourage them to invest more in the future. Encouragement to save When your child reaches 18 they will reap the rewards of your savings. However, with the Junior ISA their money is automatically put into an adult ISA account which naturally encourages them to continue to save. Other savings accounts such as Children’s Bonus Bonds also encourage children to re-invest their money into Premium Bonds or other highyield bonds which will increase their money by a substantial amount. If you want to learn about this independent children’s saving website then you should visit us at http://www.myeggnest.com/
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