8 July 2019
Three reasons why it’s important to teach kids good money habits
There are many benefits to teaching children about money – for us and them!
If children develop good financial skills from an early age, they will be more prepared to make financial decisions and meet financial challenges when they are an adult.
In a rapidly changing world – where internet banking, credit cards and online shopping are now a part of everyday life – teaching your children about managing money has never been more important, especially seeing as how important financial skills are to navigating life.
Helping them to understand the basics –how to budget, save and understand the value of money – at an early age will help to ensure they establish good money habits for life.
Here’s three reasons why…
1. They are what they see
Children learn their behaviour by what goes on around them, and how you manage money is the most important influence on how your child will deal with it in adult life – and they start this in early childhood.
Parents, school, friends, family and other environments they are open to will affect the way they learn about money. The messages we are given as children about money will likely shape our beliefs and behaviours around money as we grow into adults.
2. Impulse spending
Impulse spending can be a big problem in a consumer-based society – especially as the internet has made just about anything a few clicks away. Our children are continually being advertised to through TV, social media, and by walking into a store. Teaching children money management at an early age can help them understand the real value of money.
3. Saving lets you buy something you can’t afford straightaway
If you’re a typical child, the money you get from chores probably doesn’t cover everything you want right away. You might feel like certain items are unaffordable because of this, but that’s not necessarily true—they can be within your reach if you simply wait and keep setting money aside towards that purchase. In this way, saving changes “no, you can’t” into “you can, but later.”
Pocket money for chores also teaches other life lessons, such as how hard work earns reward and that money isn’t unlimited resource, but has actual value.
In teaching your children good money habits, the most important thing should be around making money fun – it doesn’t have to be a gloomy subject.
Spending money should be fun but not so that you leave yourself with nothing. Help them to see that money is meant to be used for good and to benefit our lives and that, ultimately, paying yourself first by saving is a great thing you can learn to do for yourself!
- 6th largest UK building society
- A mutual building society, owned by and run for the benefit of our 500,000 members
- Over 150 years' experience
- Taking care of over £9 billion of our customers' assets
- Members can access a Member Rewards page featuring competitions, discounts and more.
Principality. Where home matters.