You know, growing up, financial education and empowerment didn’t exactly take center stage. I can’t recall a single lesson in school that taught me about managing money, wages, VAT, corporation tax and savings (Although i can still do long division there’s a skill I use every day!), and honestly, my twenties and, dare I say, my thirties weren’t exactly a showcase of pension or savings savvy. It’s like the whole financial wisdom thing missed the memo or had my head in the sand. And the later you leave it the scarier it gets when you look at what Bruce would have said “Look at what you could have had!”.
Fast forward to today, and I find myself chatting with a client in their early twenties who just proudly secured the down payment for their first house. Why? Because their mum instilled a golden rule in them – stash away half of any windfall, whether it’s from birthdays, treats, or unexpected cash, and only spend the rest if absolutely necessary. Oh, and invest a bit in your pension, no matter how small, from their salary, consistently upping the ante before splurging on the latest gadgets, TVs, or gym contracts.
It hit me like a ton of bricks – who’s teaching our kids these incredible financial habits? Well us the parents so I need to ensure my own kids grow up with this kind of savvy mindset?
It’s a wake-up call, realizing that the key to financial success isn’t just in the textbooks or the latest financial news – it starts at home. It begins with instilling a sense of responsibility and financial intelligence from a young age. My client’s success story isn’t just about buying a house; it’s a testament to the power of early financial education and great parental advice.
So here’s my commitment: I need to make sure my kids grow up knowing the ropes of smart money management. It’s not just about saving; it’s about making those pounds work for you. It’s about cultivating a mindset that values financial health over the fleeting allure of the newest gadgets or the trendiest subscriptions. Its about making sure that both my son and daughter are only in situations with others they want to be and have the financial independence to walk away and never feel trapped.
My goal is simple – to equip my children with the tools they need to navigate the complex world of finances confidently. It’s about teaching them that investing in their future is as essential as the air they breathe. After all, the earlier they start, the more powerful their financial journey becomes.
Here Are Some Top Financial Tips I have Found Useful
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Allowance Management:
Give your child a weekly or monthly allowance and encourage them to manage their money. Discuss saving, spending, and the importance of setting aside a portion for future goals. This hands-on approach instills the concept of budgeting in a practical way.
Goal-Based Savings:
Help your child set specific savings goals, whether it’s for a new toy, a book, or a special outing. This not only teaches them the importance of saving but also gives them a tangible reason to budget and manage their money wisely. We set out a wish list from going to venues, to the cinema to the latest game. We then breakdown how much they would need to save over what period to allow them to do this.
We normally budget it to the half terms and yes if they haven’t saved their amount we don’t go and we downsize to the budget they have, such as life. But the pride when they hit there goals is amazing, seeing him walk up to buy his tickets to the adventure park or his game is really priceless. We have always been a huge fan of Coin it In such a visual money bank.
Grocery Shopping Game:
Turn grocery shopping into a budgeting game. Give your child a certain amount of money and a shopping list. Challenge them to make choices within the budget while prioritizing essential items. This activity helps them understand the value of money and making conscious spending decisions.
DIY Piggy Bank:
Create a DIY piggy bank with different compartments labelled for saving, spending, and giving. As your child receives money, guide them in allocating a portion to each category. This visual representation makes budgeting more concrete and helps them develop a balanced approach to managing their finances.
Role-Playing Activities:
Engage in role-playing scenarios where your child takes on the role of a consumer, seller, or even a family budget planner. These scenarios can be simple, like pretending to run a small shop or plan a family event, providing practical experience in decision-making and budgeting. We found the Mortgage Calculator Games and he had lots of fun. His top pick was:
Farm Town – it’s like this clicker farming and food game with a whopping 40 stages. Picture this: you’re in charge of this virtual farm, planting seeds, taking care of your crops, and looking after some cute animals. Your mission? Become a kick-ass farmer and rock the town market. He loved it and was a great way to learn about budgeting, profit and loss. I must admit I have played it when he isn’t around!!
When the cash starts rolling in, the game opens up a whole bunch of cool stuff – from more seeds, fancy culinary gear for your farm kitchen, and dig into some wild food production techniques through research.
Each stage throws unique challenges your way, from stacking up the cash to cooking up specific amounts of tasty food. Hit those goals, and you unlock the next level of your farming saga.
Kimi’s Top Tip: Make your truck and fridge bigger – that means more efficiency, a beefed-up farm, and more cash in your pocket.
Budgeting Board Game:
Explore board games designed to teach financial concepts and budgeting. There are various age-appropriate games available that make learning about money management enjoyable and interactive. Obviously in our house the classic Jurassic Park Monopoly board is always a win.
Digital Apps for Kids:
Introduce kid-friendly budgeting apps that simulate real-life financial scenarios. Some apps allow children to set savings goals, track allowances, and make virtual purchases. These tools provide a modern and engaging way for kids to learn about budgeting. This is a great article about pocket money apps for kids including free apps.
Family Budget Discussions:
Involve your child in age-appropriate discussions about the family budget. Explain the concept of income, expenses, and savings. Discussing real-life examples helps them understand the broader implications of budgeting. We did this when we were looking to book some holidays and got them involved it was a great way to get them to appreciate the cost and value of things.
Charitable Giving:
Teach your child about the joy of giving by allocating a portion of their money to charitable causes. Discuss different charities or community projects, allowing them to make informed decisions about where their “giving” budget goes.
Comparative Shopping:
When making purchases, involve your child in the decision-making process. Compare prices, look for discounts, and discuss the importance of making informed choices. This activity helps them understand the value of money and the impact of spending decisions.
He has got a little involved and even knows the best days to hit our local stores for the reduced items!!!
We use the fab app Too Good To Go which also is a great tool about helping with food waste, he loves checking in on a weekend to see what fab treats we can get for a fraction of the price and seeing the CO2 we saved to help the planet.
Remember to tailor these activities to your child’s interests and maturity level, gradually increasing complexity as they grasp fundamental budgeting concepts. Making learning about budgets a fun and interactive experience ensures that the lessons leave a lasting impression.