Do’s and Don’ts when teaching children the basics about money

Do’s and Don’ts when teaching children the basics about money

Saving money for kids

Child Saving

Establishing good money habits at an early age for your children is important as it builds a strong foundation for when your kids become adults.

By teaching your kids to become more financially savvy, you also impart other valuable life skills, such as being responsible.

With this in mind, here are some do’s and don’ts for developing a positive attitude towards money…

DO
  • Set up a bank account for your kids’ savings. It is important to help your child to set realistic and achievable goals. For example, your child may want a particular toy or video game, this is a perfect opportunity to get your child to save up and purchase the item for themselves rather than have somebody buy it for them. You can bring him/her to the bank where he/she can learn how to make regular deposits from their allowance.  This will become familiar and routine so that it becomes a long-term habit. It is also a good idea to encourage your child to deposit a portion of the money that they receive as a gift for birthdays etc. This will help your child to build on their savings for the future.
  • Develop your children’s understanding of the difference between needs and wants. When you bring your child to the shop, ask them to identify which items in your trolley or shopping basket are essential and which items are optional. This will help your child to make smart decisions while doing their own shop when they are older.
  • Encourage your children to earn their money, whether this means taking on extra responsibilities around the house or doing work outside of the home, like mowing the lawn, or babysitting. This teaches your kid that money does not actually grow on trees and that it needs to be earned.
DON’T
  • Let kids set unrealistic goals when they are saving. Your child needs to understand short and long-term goals as they will not achieve everything they want as quickly as they may like to. If they’re having trouble reaching their goals, offer a number of other jobs around the house that they can do to try to earn more money.
  • Use credit or debit cards for every purchase. You can demonstrate the value of money better when you use cash. Let your kids see that money is a finite resource and once you spend it, that’s it… it’s gone.
  • Give your child everything they ask for. As mentioned above, it’s vital that your kids learn the difference between needs and wants. It is only natural that you will want to do your best to provide everything they need, but they don’t need a new iPad when the one you got them last Christmas is working perfectly.
Financial Planning

Speaking of savings… Murray & Spelman (Financial Services) Ltd will happily talk you through your financial planning options.

We specialise in areas such as Life & Serious Illness Cover, Mortgages, Mortgage Protection, Income Protection, Inheritance Planning, Pension & Retirement Planning, and Investments & Savings.

To discuss your financial requirements, you can Request a CallBack today or call our office in Galway on 091 759500 or Kildare on 045 888088.