Money talks!
Published
There’s never a bad time to start talking to children about money. Learning about money – both where it comes from and how to manage it – equips us for life. Duncan Fortune, commercial head at Tesco Bank, comments: ‘Whether it’s budgeting, saving or simply understanding what money looks and feels like, involving children from a young age goes a long way in developing valuable skills. It also teaches them that money isn’t a taboo topic, but something they can ask questions about and learn to understand.’
Duncan shares his top tips on how to talk about money with kids:
Involve them in everyday spending
Planning, saving and finding the best deals are essential skills to learn, and going to the food shop is a good way to do this. Hand kids control of the shopping list and set them a budget to buy a few items.
Explain how money is earned
As money becomes increasingly digital, it’s important to explain to your kids where it comes from and how it’s earned. A payslip can be a good place to start. With young children you can explain what you do to earn that money.
The power of pocket money
Children as young as three begin to understand the concept of money and what different coins and notes mean. You can put this into practice by introducing pocket money early on. Make it fun by finding them a place to save their pocket money, like a piggy bank or savings pot.
Encourage intentional saving and spending
Encourage them to save up for what they really want, and talk through how much money they’d need to save, how long it might take and what steps they can take to reach their goals faster. Share your own experience of how you set and work towards your own savings targets.
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