We all know that money is an important part of adult life. It plays a vital role in the jobs and careers we choose, and it can, to a certain extent, dictate how we spend our free time. You might say that learning the value of money is an essential aspect of growing up – but the cost of everyday living is something which many young people don’t fully grasp until they leave home.
It isn’t easy to teach someone how to become an independent, self-reliant adult – it’s a hands-on process, and one which has to be personally endured. But as a parent, there are things you do to ensure that your children begin to grasp the concept of money at an early age:
Be consistent with pocket money
Giving your children pocket money helps introduce them to the process of weekly or monthly earnings early on. But be sure to keep the amounts and frequency of any pocket money payments consistent – buckling when your child’s periodic allowance runs out early and giving them more won’t help them to stay disciplined.
Educate them through games
It may seem obvious, but board games like Monopoly can help to introduce younger people to financial concepts such as utility and rent payments, and provide vital lessons in how to manage money.
Get them involved in grocery shopping
The weekly supermarket shop is a chore replete with potential traps for the novice to fall foul of. Carefully worded special offers, premier or discount brands, prices set according to weight – we all remember how hard those first few trips to the grocers were when we left home ourselves. If you want to familiarise your children with the practice of shopping on a budget, then why not get them to help you with yours while they’re still living at home? You might share your budgets and receipts with them, and even get them to make choices for you when selecting products.
Open a Junior ISA
It’s never too early to get your children saving for their future, and you can do this by setting up a savings account for them. Paying in regular amounts, keeping them updated on interest being paid in, and maybe even getting them to put in a certain amount of pocket money every so often, will help them to see the rewards of putting money aside – and get them into exercising good habits early on.
This article is written by Adam who has an ethical junior ISA account for his child. He uses TheChildrensISA.com to manage this service.