Mums are happier talking about money than dads
Some 28% of women were happy to speak to their kids about money management compared to just 19% of men. And 76% of mothers encouraged their children to use mobile apps to learn about personal finance, compared to 64% of men, a survey by Fidelity International found.
More than a third of mums (36%) said the autonomy of money apps would encourage their children to take more responsibility for their financial decisions.
And 23% said apps would improve their children’s understanding of personal finance, while a further 23% thought apps would improve their confidence when using money in real life situations.
Maike Currie, investment director for Fidelity International said: “With children recognising the value of money and its basic purposes by the age of seven, instilling a healthy attitude to money and finances early in their lives is crucial.
“With the advancements in technology over the past few years, using digital aids and apps is a simple way to break down complex topics and make them more appealing.”
Five tips for teaching money to children:
- A weekly allowance is a good place to start as it teaches children the value of money. If they are very little this can be used as a teaching tool – for example you could give them pocket money equivalent to their age. While this may work with a 4-year old it gets trickier with teenagers. For teens the most important lessons rest on the two c’s – credit cards and compounding. If they understand the risks of the former and the value of the latter, you’re half way there.
- Don’t fret too much about how much to give them although it is wise to have a conversation with other parents to get a good idea of the benchmark. More importantly help them to use this allowance wisely – they should understand the need to set aside some money to save (for a goal), spend (treats and the like) and share (offerings and charity).
- Try to involve your child in some financial decisions. For example if you’re shopping in the supermarket and deciding between two products – explain to them why it makes sense to buy the better priced alternative if the quality is similar. Give them some of the shopping money to make their own choices – for example what fruits to buy within the limits of what you need.
- Make sure the learning process is fun and not a chore. Managing and dealing with money is part and parcel of being an adult and you can influence whether your child approaches financial matters with confidence rather than ignorance or fear.
- Finally, don’t let the “I want, I want” conversation end up in squabbling and tears. Instead, see it as an opportunity to teach your children about finance. You don’t need any textbooks – the world is your classroom.