Saving money is on the homeschooling curriculum
More than a third of parents have used lockdown as an opportunity to teach their kids about finances, according to Halifax.
Research by the bank found that 92% of parents encourage their children to save. As a result, nearly one in five kids save all of their pocket money.
The latest pocket money survey found children receive an average of £7.55 a week. Yet, despite their parents’ efforts, nearly one in five (17%) kids don’t save any of it.
Of those who are saving, 16% save all of their pocket money, potentially more than £30 a month. One in five (20%) save at least three quarters, and 29% save half.
Savings wish lists
During lockdown, video games topped children’s wish lists, with more than a third saving up for a games console. Nearly one in three (28%) were saving for buying new clothes and 23% saving for new toys.
A significant number of children say they could save more but chose not to do so. A quarter reported that they had extra cash which didn’t go into savings with 22% admitting they should be saving more. A third of children were happy with the current amount they save.
Emma Abrahams, head of savings at Halifax, said: “Encouraging children to save from a young age is incredibly important, not least to encourage an understanding of the value of money, but to create an early positive relationship with managing finances.
“Many parents have used lockdown as a time to talk to their kids about saving and one of the best ways to create engagement is by setting tangible goals. By creating something visual like a savings chart or using a piggy bank, your child can see their wealth accumulating towards the item at the top of their savings wish list.”
How to talk to your children about money
- Encourage the savings habit from a young age
Use a piggy bank or savings jar to make savings fun.
- Get them to manage their money
If you can afford to, teach kids to manage their money by giving them regular pocket money and allow them to make financial decisions.
- Open a savings account
This will help children understand about saving, interest, and how to manage an account.
- Talk to your children about bills
When you receive bills, use it as an opportunity to explain all the different things that cost money and how you use your earnings to pay for it.
- Get your children involved in managing the family finances
Get them to help with the weekly shop and build an appreciation of the cost of everyday items.