Teach Your Child To Be Money Savvy
Saturday 21 February 2009
Research shows that on average, children get more than £6 per week in pocket money, do chores for cash and even use their parent’s credit and debit cards to shop online . Young people are making decisions about money from as young as seven , so it is important to teach them about budgeting and saving from an early age. Here’s the Consumer Council’s guide to helping your kids manage their money wisely.
Talk to your child about money
Explain how to save and budget. Talk to them about using cash, cheques or debit cards to pay for things.
The value of money
Giving children even a small amount of pocket money to spend, save or budget gives them the opportunity to appreciate its real value. If they’re managing their own money, they might make that £10 mobile phone top-up card go that little bit further.
Encourage your child to save
Does your child pester you for the latest computer game or “must have” ringtone? Set them the goal of saving for it themselves - the earlier a child starts saving, the more likely they are to keep the habit as they get older.
Help plan a budget
Why not plan a budget together? You’ll benefit from spending quality time together and it will help your child see how much money they have compared to what they spend. This is particularly important for older children who might be leaving home soon and will need to buy essentials like food and electricity for the first time. Download the Consumer Council’s budget planner at www.consumercouncil.org.uk or phone 028 9067 2488 for your free copy.
Try to lead by example
Lead by example by showing your child how you manage your money; Do you work out a household budget or spend and hope for the best? Do you try to pay bills on time or stuff them in a drawer? Remember, actions speak louder than words.
For more information contact the Consumer Council on 028 9067 2488 or visit www.consumercouncil.org.uk
