When I was completing my tax return for my freelance business, I reviewed my income and expenses spreadsheets.
I saw expenses where I knew I hadn’t got the full value. I reviewed my direct debits and made strict decisions about what to keep and what to drop, deciding to buy only when my business would benefit, and when my income would support those purchases.
It dawned on me that, when I was in the classroom teaching children about money, having common sense is important. We can learn from what we teach children.
Effective ways for children to use money
To involve children, incorporate money into everyday activities, like giving them money to spend in shops, and encouraging them to learn about savings and spending.
Helping children develop good money habits early on can set them up for a lifetime of financial well-being.
Using physical savings tools
Piggy banks or savings jars are classic methods to allow children to visually see their savings grow. Clear jars can be especially effective. Decorating their jars can make saving more fun.
Using three separate jars, ‘Spend, Save, Give’ Jars, helps children learn to allocate their money for different purposes.
Setting and tracking spending goals
Goal setting encourages children to set specific, achievable, savings goals, e.g. a new toy, a game, a special outing. This provides motivation and a sense of accomplishment.
Visual tracking involves creating a savings chart or using an app to track progress toward their goals. Seeing their savings increase can be very rewarding.
Earning money
A regular allowance provides an opportunity to practice budgeting and saving. Earning pocket money for completing age-appropriate chores teaches the connection between work and money. This also teaches them the value of money.
As children get older, part-time jobs offer valuable experience in earning and managing money.
Using banking tools
Opening a savings account at a bank introduces children to the concept of interest and how money grows over time.
Debit Cards / Apps for children can help children learn to manage their money digitally, track spending, and set savings goals. Many of these tools also have parental controls, so parents can monitor spending.
Learning through maths activities
Money games including board games and online games that involve money management can make learning fun.
Shopping trips involve children in grocery shopping. Comparing prices teaches them about value. Help them to understand the difference between ‘needs’ and ‘wants’ during shopping trips.
Considering factors in children’s use of money
Ensuring saving consistency
Regularly reinforcing saving habits is crucial. Use positive reinforcement with praise and encouragement which can go a long way to motivate children to save.
Is it age-appropriate?
Matching saving strategies to the child’s age and understanding is key.
Teaching children the value of money
My Money Week
In my teaching days, our primary school did a national My Money Week as a whole school theme every June. It is run by Young Enterprise. The motto of the charity is ‘Spend a little. Give a little. Save a little.’
Their website says, “We help teachers to:
- Develop their knowledge and confidence in delivering applied learning opportunities.
- Embed employability and financial education initiatives across the curriculum through high quality tools, resources and support.
- Provide young people with opportunities to develop employability skills.
- Raise aspirations – helping young people discover their talent, potential and ambitions.
- Bring the world of work to life for young people.
- Develop the financial literacy of the young people they work with.”
Here is their website: https://www.young-enterprise.org.uk/teachers-hub/financial-education/financial-education-programmes/my-money-week2/
Talks Money by Deborah Meaden
A useful book on money for children is Deborah Meaden Talks Money. It is aimed at age 11 upwards. From the reviews I have seen on bookshop websites, I am looking forward to buying this one!
Her blurb says:
“Money is such a huge part of our lives, so learning how to make it work best for you is a crucial skill.
Knowledge is power! Whether you want to earn money, save money, set goals, or set up and grow a business, Deborah will be your personal guide, demystifying the world of finance, and sharing the knowledge and insights that have made her one of the UK’s most successful entrepreneurs.
Fearful of finance? You are not alone! TALKS MONEY is packed with podcast-style interviews with ordinary young people, as well as top businesspeople and personalities who reveal the secrets to their success – and the mistakes they’ve made along the way.
Create great money habits! With Q&As, quizzes, tips and challenges, TALKS MONEY is the only guide you need to build the skills and confidence you need to manage finances and reduce money worries.
The empowering finance book that every young person needs right now.”
Banking apps
GoHenry
Strapline: Where kids go to learn money
About: “We want our kids to be smart with money, understand wants vs. needs, create savings habits, make investment decisions, use money to help others, take responsibility and understand when it’s gone, it’s gone. We created GoHenry with the goal of helping kids and teens learn about money in a practical, fun way, and provide all the tools to help parents nurture healthy financial habits in their children.
Our community believes that good money skills come from empowering and trusting our kids to learn by doing.
Our story:
Back in 2012, we were funding our kids’ online gaming accounts with our own credit cards and paying extra here and there— all in between scrambling around for their weekly allowance and trying to help them learn about money in a way that resembles the world they are growing into.
We needed a simple solution that was easy for parents and practical for kids, and designed specifically for families. We struggled to find something, so we started GoHenry.
Website: https://www.gohenry.com/uk/home/
Other apps
Greenlight: https://greenlight.com/
Starling Kite (from Starling Bank):
https://www.starlingbank.com/current-account/kite-debit-card-for-kids/
Now for the adults in the room …
Money resources for adults
I get my favourite dollops of common sense from Martin Lewis, especially following his motto, ‘Buy what you need, not what you want.’ Here is the website for the Money Saving Expert.
I also enjoy listening to Money Box on BBC Radio 4 for useful financial advice. Hear previous episodes on BBC Sounds.
To sum up, doing your tax return is a good time to review your finances and help the children in your life do the same.
Sprinkling publishing confidence,
Annie
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I’ve said it before, and I’ll say it again … one of the things I love about my freelance business is the variety. As well as editing, I enjoy teaching primary school pupils. Maths is one of the subjects I boost in tutoring sessions.
