Have you ever wondered how to go about explaining money to your children? When it comes to a financial education and learning the value of money I’ve often found myself struggling to convey its importance to my kids.
Financial education – Money training for kids
We started pocket money with Wilf when he was around six years old and he currently gets £3.50 a week. At times he found the connection between the tasks he is meant to do to earn the money and us just giving him the money not always so clear. We went through a period of not reminding him to do his chores so he would in turn forget and then we would still give him pocket money anyway. Afterward, we tried a printed checklist that worked fairly well but often forgot about much he was owed.
As Mabli is now four and expected to also do certain things around the house (pick up her toys, clear table and get dressed amongst a few others) we have been talking about starting pocket money with her too.
Financial Literacy Through Play
We’re not just talking adding and subtracting cute little pretend coins; we need to dive into the nitty-gritty. Budgeting, saving, the concept of earning – the whole shebang. And trust me, I am not coming from the mountain top; I’m climbing it with you.
And it’s more than just about avoiding debt. It’s about empowerment. Picture your wee one being able to make smart choices, feeling all confident with their piggy banks, and eventually, their bank accounts.
It’s about showing them the value of money in real-time. Like, “Hey darling, that new toy costs X amount of hours of mummy or daddy working.” It puts things into perspective, and they start to grasp that money – though it can’t buy happiness – has value and requires effort to earn.
But let’s be real here, it’s not all about being serious. Gamifying the learning process can seriously work wonders. I tried this board game about money with my littlies, and they loved it – honestly, they’re teaching me at this point! Monopoly who? We’re talking real lessons but make it fun. Bake sales, lemonade stands, chores for pennies – it’s like the training wheels for future money maestros! I also love this financial education book for instilling financial literacy in a fun and engaging way.
Pocket Money for financial skills
As an example a large task for Wilf is to tidy his room, he finds this a particularly overwhelming task so he earns the largest reward at 50p also knowing he will probably only do this a couple of times a week realistically! For other daily tasks like clearing the table or piano practice he earns 10p a day and then for everyday reminders like reading or brush teeth.
Another aspect I like is to tick off our tasks together and note down how much money they have on my phone. When lots of financial transactions are now online rather than the physical money banks of our children it feels like a great place to have a concept of the money, the earning and saving of.
A financial education is just as important as learning any of the core subjects in my option and my hope is that when my children leave home they will have a great financial skills!
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