Talking to children about money: everything you need to know

As a parent, much of what parenting involves is managing our children’s expectations. It can be so easy for children to think money grows on trees, especially in today’s over consumeristic society which has created a culture of “I want” or even worse “I need” (the latter one drives me absolutely mad!). But even still, talking to children about money is a tricky subject because we don’t want them to worry, but we also don’t want them to think that there are unlimited funds.

At the end of the day, we need to give them a balanced view, about what money is, how to look after it, and that it isn’t the be-all and end-all. So how do we go about talking to our children about money? And how can we prepare our children for the lives ahead of them? Read on to find out…

Earning 

It goes without saying that making money before you spend it is always the right way to go. Teaching children about earning money starts from as young as two years old, some people give children pocket money every week. Some people give them money for doing chores around the house, but as long as you sit your children down and explain to them how exactly they have money right now, and how they are likely to be able to earn it in the future. Then ultimately, you have given your children a good understanding.

We do want our children to respect money, and teaching them that the only way to gain it is to earn it, also improves communication and self-esteem. Teaching the children exactly where the money comes from and the boring parts such as setting up your Your Company Formations registration service, and paying taxes, will hopefully help them understand there’s nothing quite like being handed your earnings at the end of the week, and nothing is stopping you from replicating this with your own child to give them a real sense of achievement.

Saving

Not everyone can save a lot of money if they are living hand to mouth. But if your child says there is something that they want in the shop, it may be a little tight financially. But showing your child how to save for that item, then taking them to buy it at a later date, will not only teach your child patience, but it also teaches them about hard work and resilience too.

Maybe set up a new family savings pot in the house, and all work towards creating some savings for your next family holiday. Don’t forget to let your children have a good portion of control over their own savings, this will mean they shouldn’t feel out of place when they take over their finances when they’re older

Spending (wisely) 

Knowing where to get the best discounts, and ways around paying full price, there are some fantastic efforts from people online, and celebrities, to help you encourage your child to spend wisely.

Give them the challenge to save a large chunk of money towards a forthcoming family holiday (for them anyway) then not only have you gained some cash towards the holiday fund, but you’ve also got the knowledge that your child has a sound basis for the rest of their lives.

Selling

When it comes to a good clear out of your home, you are going to unearth a whole manner of toys that your children may have grown out of. Why not let your children set up a small stall to sell the unwanted (but good condition) items to earn a little bit of profit? This gets them used to handling money, working out how much cash is transferring each time. Not only educating them about money but also adding some maths into the equation too.

When it comes to sentimental items for selling just make sure that your children understand what can and what can’t be thrown away, it’s not good to realize your Most prized possession is now on its way to its new home.

At the end of the day every child is different, and you will know as their parent what approach to take, there are many avenues and many different parenting styles, so try and find like-minded people, to discuss the issue of parenting role and come up with your own ideas on how to talk to children about money. Teaching your children to be grateful for what they have, I need to work hard for it will be the best life lesson for them and should keep them in a high frame of mind surrounded by money.

Have you started talking to children about money? Do share your experiences in

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