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How do you teach your children money skills?

16 replies

user68583 · 07/10/2021 20:58

I have seen some family members of mine struggling massively with debt recently. They asked me for advice and I was shocked at their lack of knowledge regarding things like mortgages even though they are in their late 30's. Also just the way they carry on spending despite their issues. I am starting to see similar issues with their children and how they value money. They want their parents to spend a fortune on clothes despite one of them who is 18 refusing to get a job.

Anyway it's not my business but It's made me think of how I need to educate my DC regarding money. I thought a lot of it was common sense but I am not so sure. Has anyone got any tips/advice? I was thinking of getting them to occasionally earn their pocket money/earn extra or getting them to save abit themselves when they want something expensive.

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DockOTheBay · 07/10/2021 21:05

Not buying them stuff whenever they want. If they want it, they save up their pocket money to buy it or do extra chores to earn pocket money.

Encourage them to get a job as young as possible. Paper round etc at age 15.

scully29 · 07/10/2021 21:12

Are they little? Some good games like money match cafe? Or if older yes get a job by age 15 in a shop/waitressing etc. I guess its understanding the value of things? Helping them save their birthday money etc, go through things with them, help them learn to budget and save.

LorenzoVonMatterhorn · 07/10/2021 21:17

Ive always given them a budget for christmas and birthdays. My ds works out his christmas list to the last penny. If he cannot afford something, something else gets bumped.

They both have gohenry and always check how much they have before going shopping.

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Alpacinoshoohaa · 07/10/2021 21:24

Op we can't blame young people for not knowing. It's a massively huge gap in our dc education. It should be taught from primary schools as part of maths..

My two dc are so different, one is naturally a long term waiter, happy to spend and save.

The other is an impulsive spender.
I'm show each one the cash I save up for every thing. Drum into them that a credit card is not your money.
Save for what we want. Budget... I've tried to start the older one on investing... I've made small progress but naturally it bores her however I've managed to get her to understand index funds.. And what buying them means or eft etc. Buying world wide and different types of shares eg property /minerals /tech /etc

Alpacinoshoohaa · 07/10/2021 21:25

Oh and giving money for stuff like mine craft and roblox and trying to get them to budget it

WayneBruce · 07/10/2021 21:30

I disagree with it having to be tsught in schools. Household budgeting and managing finance is a life lesson parents should be happy to teach themselves.

Cupidity · 07/10/2021 21:30

I think just making money things part of every day conversation. So if they ask for something in the supermarket, discuss how much it costs, and whether you can afford it, or get it cheaper somewhere else. When your gas/water/electricity bill comes in show it to them - that way they'll always 'know' that these bills come in an need to get paid.

We give our dc quite a high amount of pocket money, but all the little bits they want in town (smiggle, Claire accessories, lego, etc) they need to pay for themselves. If they want something big-ish they'll need to save up for a month or two, but it's within their reach. So rather than giving them 50p a week which would mean they'd be saving up forever they get around £5. If they want a lego set for £25 then it's possible to get it in a month as long as they don't want anything else. This has actually ended up saving us money as they've stopped pestering us for things in town (standard reply is yes you may have it, but you need to buy it yourself!) so we're not just buying them stuff for the sake of it.

They have a bank account, we give them cash every month which we then take them to pay it in. If they want anything they go to the bank and withdraw the money and we always get them to check their balance. We get paper statements sent through the post every month so they can see what they've paid in and what's gone out.

My dd has just started secondary, so we've upped her money to slightly more a week, as she's now going into town with her friends more often, and they buy a drink in Costa or get a mcdonalds. But she knows that if she were to blow through all her cash in the first week, then she won't get any more till next month which means she paces herself and budgets.

billy1966 · 07/10/2021 21:36

Similar to @Cupidity I found the tip of giving them money and telling them to decide how theybspent it meant when we went shopping they didn't ask for anything and they looked at the price of everything and were very savvy and suspicious of the cost of things.

Once they are spending THEIR money not yours, they learn very quickly.

So even from a very young age giving them money to buy their own sweets etc. helps them to really look at the price of the things and to search for value.

something2say · 07/10/2021 21:42

I dont have kids but if I did, I'd teach them to save a bit every month. To never get used to spending all their salary and to tolerate the feeling of having money and not having to blow through it all. I'd also do budgeting with them. I work with homeless people in housing and the number who don't know how to manage their money is sad. I'm always advocating saving.

Two things you need in life; money, and friends.

Iloveabourbon2 · 07/10/2021 21:46

I suppose it depends how old your kids are. But the first rule I would teach your child is to spend and same some too.

Iloveabourbon2 · 07/10/2021 21:48

@WayneBruce

I disagree with it having to be tsught in schools. Household budgeting and managing finance is a life lesson parents should be happy to teach themselves.

Yeah "should" but if your parent lacks basic money skills and education its not possible.
I definitely think schools should teach this especially with things like "Klarna" that have recently come around.

IceCreamAndCandyfloss · 07/10/2021 21:50

@WayneBruce

I disagree with it having to be tsught in schools. Household budgeting and managing finance is a life lesson parents should be happy to teach themselves.

Me too. It’s something parents should teach and model.

DockOTheBay · 07/10/2021 21:59

@WayneBruce

I disagree with it having to be tsught in schools. Household budgeting and managing finance is a life lesson parents should be happy to teach themselves.

Yes, but if the parents are crap at budgeting how will they teach their kids to do it? It would just keep getting worse every generation

DockOTheBay · 07/10/2021 22:01

My daughter is 4 and already know that when she outgrown clothes or toys they go in the sale pile. Don't know if that's good or bad 😂

Ragwort · 07/10/2021 22:07

Get them used to saving as soon as possible, open an account for them that they can save into, clearly explain about budgeting and not going over board with pocket money and presents (even if you can afford to), encouraging them to get a part time job as soon as practical.
Talk honestly at home about money, savings, investments, pension planning etc.

Paq · 07/10/2021 22:13

You have to allow them to make stupid mistakes and suffer the consequences. It's painful but it's effective.

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