How to teach little ones to manage money
Here are some tips on how you can teach children as young as 3 how money works, including earning, spending and saving
As parents we want to give our children the life skills they’ll need for when they enter the big, wide world, and money management is a key one. Surprisingly, money management is often not fully covered in school curriculums, leaving many children uninformed about financial matters.
However, you can start teaching little ones as young as 3 to start understanding the concept of money, helping them grow up to be confident and responsible when it comes to looking after their cash.
Teaching 3 – 10 year olds about how money works, including earning, spending and saving
- Give your little one an allowance. Make sure they have earned it - by doing chores, for example. Let them spend this on what they like, allowing them to make mistakes to learn from.
- Let your child choose something they would like to buy. Explain that they will need to save some of their allowance to do so. Together, create a plan for much they will need to save and for how long. A chart or money box could help.
As you child gets older, you can introduce new lessons to learn, so that they are prepared for other aspects of finances that they’ll encounter in adulthood.
Teaching 11-16 year olds about money:
- Getting more for their money by comparing products and providers
- Growing their money through careful investing
- The benefits of short-term and long-term saving, plus the different types of savings accounts available
Teaching 17-21 year olds about money:
- Mortgages and how to save for them
- How credit works and avoiding debt
- Give them a kickstart
Considering saving for your child’s future? Find out more about Shepherds Friendly’s Junior ISA.
When you take out an investment product with us your capital is at risk and you may get back less than you have put in. In poor investment conditions we may apply a Market Value Reduction (MVR).