You are here: Home - Saving-Banking - How to -

Five ways to teach your kids the value of money

Written by:
Today kicks off My Money Week, a national initiative aimed at teaching school-age kids all about money and finance.

To mark the start of the 11th annual My Money Week, Richard Stone, chief executive of investment platform, The Share Centre, offers some tips on how you can empower your children to make decisions about money and saving.

  1. Talk about it! We are all naturally reserved when talking about money, but with children it is important. Talk about the reason you go to work, what earning money means and what different things cost. Talk about how much things cost relative to each other and ask your children whether they think that’s right.


  1. Use cash. One of the biggest challenges today is money is intangible. We all use our debit or credit cards and pay with contactless cards. Using cash is tangible and shows children what money “is”. You can even go one step further and allow them pay using cash. This helps with maths, adding up the price of things and working out what change they might be due.


  1. Encourage them to earn a bit of money by doing odd jobs. Again, this helps to show the value of money and the concept of earning and work. If you pay them in cash, you could then even allow them to spend that cash or perhaps take some of it to a bank or building society and put it into a savings account for them. For older children you can have more detailed conversations about savings, interest rates and even investing. The idea they could own a little bit of Tesco or Sainsbury’s makes for an interesting conversation when out shopping in those retailers.


  1. Show them other ‘money’. If you are on holiday overseas make sure you get some local currency. Explain that not every country uses the same money. Talk about the pictures on the notes – they may well depict the head of state, for example, or places of interest. Talk about the exchange rate and work out whether familiar things cost the same e.g. a favourite chocolate bar or can of drink.


  1. Lead by example. Children learn by example, so the best way to teach your child about saving money is to save money yourself. Have your own jar of money you put coins in regularly. You can also show your children how their Junior ISA or Child Trust Fund (CTF) has grown in value over a period of time relative to what you have contributed on their behalf.


There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Big flu jab price hikes this winter: Where’s cheapest if you can’t get a free vaccine?

Pharmacies, supermarkets and health retailers are starting to offer flu jabs ahead of the winter season, but t...

Is now the time to fix your energy deal?

Fixed energy tariffs all but disappeared during the energy crisis. But now they are back with an increasing nu...

Octopus steps in to buy Shell Energy – what customers need to know

The deal is expected to complete in the fourth quarter of 2023 and will take Octopus Energy’s retail supply ...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

The best student bank accounts in 2023: Cash offers, tastecards and 0% overdrafts

A number of banks are luring in new student customers with cold hard cash this year – while others are compe...

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Money Tips of the Week