5 ways you can teach your kids about budgeting
Research shows that children who talk about money and are given money regularly to spend and save tend to do better with money when they grow up. Because children are developmentally capable of saving from age 5, it’s important to start building good money habits as early as possible.
Set up by the government, and funded by a levy on the financial services industry, the Money Advice Service’s job is to give us free information and education on financial well-being.
Their research shows that children who talk about money and are given money regularly to spend and save tend to do better with money when they grow up. Because children are developmentally capable of saving from age 5, it’s important to start building good money habits as early as possible.
5 ways you can teach your kids about budgeting:
1.Piggy banks (or Jam Jars 😀). When you first teach your kids about saving and budgeting, start with a physical piggy bank or set of jam jars. Handling physical money from a young age helps them to understand the value of different coins and notes.
2. Give your child pocket money. You can start giving your child pocket money from as young as 4 or 5. Make sure you are consistent with when you give it so they know when to expect it. If they understand the following, then you’ll know they are ready.
- You need money to buy the things you want / need.
- If you save money, you will have more of it and you can buy more expensive items.
- If you spend all of your money in one go then you won’t have any left until the next time you get your pocket money.
3. Save as a family. If you think of something small to save up for over time this will teach your child to wait for the things they want. Perhaps a family board game or a new plant for the home that your kids can help look after. By putting a few pounds away each week your kids will start to learn the concept of saving.
4. Keep talking to them about money. As your kids get older, keep talking to them about money. Talk about bills and where the money goes. You can also ask your children to help you find the best priced items when you go out to the shops - kids love a challenge!
5. Turn budgeting interactive. With the HyperJar app your kids can create digital Jars and give each a name and a purpose. That could be anything from ‘Comics’ or ‘New Nintendo Game’, to ‘Savings’ and ‘Charity’.
When our Child Cards launch - coming soon! - your kids can get their own cards and spend from their Jars directly. This 100% free pocket money manager can help teach the value of money and make it fun. Help your kids set up goals, rewards and even decide with them the shops they can spend in. If you join our waiting list, we’ll let you know when it’s available to download: https://vrlps.co/mbMJJpX/cp