How to teach kids about

Families Education How to teach your kids more about money

by Gillean Dooney

Approaching the topic of money with your kids can often seem like a daunting

task. Many parents are unsure of the best time to start introducing it and struggle to verbalise it appropriately for young children to understand. As a mother myself, I’ve learned the best ways to simplify the concept of money for kids over the years - and the earlier the better!

A great place to start is by chatting to your kids about everyday items that cost you money as a family household, such as sharing how much you spend on weekly groceries and how you’ve budgeted for past holidays, family meals out or other leisure activities. Helping your kids understand that none of these things come for free will allow your child to slowly get a grasp on the concept of money from a young age. You can then help them build on this as they get older.

Whenever your child receives money, whether that be for birthdays or Christmas, encourage them to save a percentage so they can start to see their money grow. Teach them that out of sight means out of mind and explain the benefits of stashing it away so that they can use it for something they truly need one day in the future.

If you’re looking for a fun way to engage your kids around the topic of money, why not play board games that involve handling cash? For example, Monopoly is a great way to show how money can be used to purchase a house, as well as teaching children the importance of having ‘emergency funds’ available. Not only are these games educational and a great bonding moment for families but the important money management themes will stick with them for the long run.

A great place to start is by chatting to your kids about everyday items that cost you money as a family household

Another way to get stuck in with a creative financial lesson is to set up a tuckshop at home. By giving your kids a set amount of money to spend on snacks and treats each week, this is an easy way for them to start understanding the nuances of money exchanges in everyday scenarios. Challenge them to make their money last the whole week, so that they can also start to grasp the concept of budgeting. If you choose to make the price of sweet treats more than that of fruit, you’ll not only encourage them to think about where they’re spending their money but they will also learn how to make healthier choices.

Pocket money

Giving your children pocket money from a young age is a good way to get them child thinking about and handling their own money. You could create a list of weekly chores and then award them with pocket money once these tasks are complete - whether that’s dog walking or doing the dishes. In fact, new research from Barclays revealed how much parents value having their children lend a hand around the home, with over two thirds (68 percent) rewarding them with pocket money.*

Having a specified amount of money to spend each week will teach them to prioritise what items they need the most, and how to distinguish between ‘want’ and ‘need’, based on their allocated budget. For example, they may have to choose between saving up for a new toy they’ve had their eye on versus buying a birthday gift for their friend. *Consumer research was conducted by OnePoll surveying 1,000 parents with children under the age of 16 in the UK between the dates of 19.11.21 and 23.11.21

Gilliean is Managing Director at Barclays and mum-of-two. For more info on teaching children about money, visit www.barclays. co.uk/money-management/guides/kidspocket-money/

FUNDRAISING

Encouraging your child to get involved in fundraising activities, for example a charity bake sale, can help them learn some basic money management skills. In this case, that could mean teaching them how to subtract the cost of baking ingredients from the total raised from the cakes in order to work out how much profit they made for charity. Beyond teaching money management skills, fundraising is a great way to demonstrate how money can be used to contribute to a good cause and help those who might be less fortunate than themselves.

If you’re looking to make fundraising more fun and interactive, why not encourage your kids to set up their own charity event and invite friends and family to support? Giving your child a small level of responsibility in the organisation of an event can help them to feel in control of the money and allow them to act as an advocate for their chosen charity.