hellomagazine.com's homepage, The place for daily celebrity news

Mother and Baby

Consigue tu propio blog en "Cocina y recetas" Register
Follow us: Facebook Twitter
12Sep 13

Teaching children money management skills

Teaching children money management skills while they are young is extremely important. As a working mum, your strong work ethic already sets a good example for your children to follow. But giving your kids ongoing responsibilities with money such as household chores will help them develop a healthy financial philosophy, and they will be more likely to be responsible when they properly enter the workforce.

When it comes to my boys Jack and Rodger, I have enlisted two strategies in order to teach them the value of money.

Teaching children money management skills

Teaching children money management skills

Earning a wage

I have found that giving my children opportunities to earn their own income around the house has big advantages. Most importantly, it means less work for me! It instils a good work ethic in children and teaches them the value of earning a wage. We have a job board where we post chores that need to be done and a wage for each job. For example, taking the bins out earns 25p, and small jobs like wiping the dishes earn 5p. We also leave a space blank for on-the-spot jobs.

I like to get my kids involved when I make payments with debit or credit cards, too. For example, they will accompany me when I pay for petrol with a card, and later we will sit down together and go through the bills. I’ve found that this demystifies that magic plastic card and helps them understand how money works and where it comes from. Once your children are old enough, you can also have a go at the ins and outs of your household budget together so that they know the financials involved in running a home.

Managing pocket money

To teach the importance of budgeting and saving, I give my kids 50p multiplied by their age every week for pocket money. They are required to then split the pocket money into three portions and decide how much money to dedicate to each portion. One portion must go to charity, one must be put into savings, and the last can be spent.

I encourage them to have a goal to save up for, such as a new computer game or a new book. I also offer them concrete calculations that demonstrate how quickly their money can grow if they put it away in savings. For example, if they put away £2 a week, then by the end of the month they will have £8, and by the end of the year they will have £104. The pocket money is separate from the money earned from the job board, so their savings potential is even higher, and boy, do Jack and Rodger know it!

Tags: , , , , , ,

Write your comment



We reward your contributions!

Get awards that recognise your work and make your blog stand our from the rest.

+ How do badges work?

Recent Comments