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Encourage second-hand spending

Children will often trade items with each other, in the playground or at their houses afterwards. Looking back, I was able to collect the amount of computer games that I did because I bought them off my friends after they had finished with them.

Nowadays, technology provides more forums for second-hand purchases with the rise in popularity of social media. Online car boots enable children to find new ways of purchasing items, as well as selling their own unwanted toys. Be careful where and with whom they are trading, however.

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Teaching children about financial responsibility

The education system is constantly changing as the government attempt to fit our children into an unpredictable future society. However, when planning the next curriculum, how much thought do the government put into teaching them life skills such as managing their finances? With so much emphasis on Maths, English and Science, life skills such as finance is often treated with minimal importance. Yet, as parents or guardians, who do we suppose educates our children in financial matters, and equips them with the skills necessary to manage their future financial situation? Do we leave them to learn for themselves? If not school, surely it is the responsibility of the parent? Although it can be difficult to teach children about the value of money, we have put together some points to consider, to provide what we hope might be valuable assistance.

Loans

From a very early age, children can understand what a loan agreement is. Even if just borrowing stationary from a friend, children can be very creative when making agreements between themselves, coming up with their own terms and conditions about repayments of future borrowing. Even the concept of refusing to lend someone an item in the future because they previously returned the item damaged or late, links to the concept of credit checking. As parents or guardians, these transactions could be used as examples to discuss short term or long term loans. Start by explaining that if they were to give the item back to a friend sooner, or as agreed, they would be more likely to borrow future items as friends would trust them more. Explain that this is the same as the loan agreements that adults make.

Pocket money

As a child, I always felt that I had a lower amount of pocket money than all my friends. Whenever I wanted to save up for something, it took me longer. However, when I did manage to buy those pair of trainers I had been craving for weeks, it felt like I had achieved something worthwhile. Giving children pocket money, I believe, should be encouraged from an early age, even if only to buy something small. I used to spend a small amount of money on sweets and was encouraged to save the rest in my piggy bank. This certainly taught me how to save and, as a result, I have always been a careful saver; allocating my wages accordingly. Teaching children how to save pocket money as soon as possible might help them to realise that apportioning money between short-term and long-term desires can produce long term benefits for them as they don’t rush to spend all of their money at once.

Be a good role model

It is (arguably) even more difficult to show children how to be conscious of their finances, if we are not good with money ourselves. Even if this is the case, however, it is still possible to help children avoid the mistakes that you yourself have made. In some ways, it might even be more beneficial for them, as they learn more quickly how not to do things. For example, if you did not pay into a pension until a later age, show them how much money you could have saved if you had started earlier. If you are well off, show children what you did to get where you are today by being a good role model for them.

Part-time job

Many of us complained when we had our first part-time job, however, by encouraging children to have part-time employment enables them to understand how hard they must work to be successful and purchase what they want. By placing them in control of their own destiny, children will often work harder to make their desires more affordable. Wages for children might still feel incredibly low in comparison with adults, but by going through this phase, it feeds their hunger for working harder and earning more. Part-time jobs also help children learn how to write a good CV, build teamworking skills and search for employment.

Budget

This might not be something I did much as a child, but looking back, I regret not learning how to use spreadsheets sooner. As finances get more complex, it can be easy to lose track of incomings and outgoings. Keeping a simple spreadsheet and budgeting each month can be incredibly easy, provided you start the habit early enough. Teach children how to budget, and, if necessary, show them your budget, to enable them to keep track of their finances easier. Perhaps if they have learnt how to use spreadsheets at school, they might even teach you a trick or two?

Encourage second-hand spending

Children will often trade items with each other, in the playground or at their houses afterwards. Looking back, I was able to collect the amount of computer games that I did because I bought them off my friends after they had finished with them. Nowadays, technology provides more forums for second-hand purchases with the rise in popularity of social media. Online car boots enable children to find new ways of purchasing items, as well as selling their own unwanted toys. Be careful where and with whom they are trading, however.

 

 

About Us

Although educating children in financial matters can be time-consuming, the importance of enabling them to develop good money-spending habits cannot be underestimated.

In the capitalist society that we live in today it is unclear what the most useful topics of education for the future are.

One thing that will be certain, however, is that money will be a big part of the immediate future and educating children to handle it correctly is essential.

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Encourage second-hand spending

Children will often trade items with each other, in the playground or at their houses afterwards. Looking back, I was able to collect the amount of computer games that I did because I bought them off my friends after they had finished with them.
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Customer value chain

Nowadays, technology provides more forums for second-hand purchases with the rise in popularity of social media. Online car boots enable children to find new ways of purchasing items, as well as selling their own unwanted toys.
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The education system is constantly changing as the government attempt to fit our children into an unpredictable future society. However, when planning the next curriculum, how much thought do the government put into teaching them life skills such as managing their finances?
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