I’m rubbish with money, I really am and it drives Paul absolutely insane. I try really hard to be good and budget but it just escapes me somehow. Although my parents were quite good at teaching me about money, in hindsight maybe they didn’t go far enough for example I never really had a proper concept of Credit Cards or Loans – to me they were just free money that I borrowed to go on some really fabulous holidays!
So where to start with Miss L’s financial education?
We’ve started off by giving her household jobs to do – dusting, folding laundry and the odd bit of drying up – so she can earn her pound a week pocket money. She knows that it’s her money to spend on what she likes, toys, sweets, books but she has to save up to say buy a book or a more expensive toy like a Build a Bear and once that money is gone it’s gone and she has to save again.
But where does it go, now she’s getting older? I’m thinking of opening a children’s bank account for her so she can learn about saving. For example she can save up all her change and then taking it to the bank and put it into an account. The idea behind this is that by her being able to withdraw money lead naturally onto teaching her about credit cards and loans – a scary amount of young adults have no idea about APR or how easy and quickly you can get into a lot of debt.
When she’s older maybe 12ish, we’re going to give her clothes allowance to teach her about budgeting (and to save on arguments!) so she can buy her own out of school clothes – obviously we’ll still buy school uniforms.
But what else is there that you can do? What age do you think children should understand about money? How have you or will you teach your children about money and finance?