So, the first week of home schooling amidst the coronavirus pandemic begins, and teachers are setting up online as best they can, with many secondary schools having virtual learning environments for the normal lessons. However, this period of home schooling could also be the perfect opportunity to start introducing your kids to the basic concepts of money so they not only are broadening their curriculum, but also create some great life habits.
First things first: Bring up the topic.
57% of parents agree they are the single biggest influence on developing their children’s money management skills. However, 58% admit they find it hard to talk to their child about money matters*.
Being open about money as an everyday conversation is key to helping them recognise it as a part of life. i-stock blog “Money Talk: Taboo no more” talks about this discussion in a lot more detail.
Every day examples such as why you’re turning the lights off or what they could do with the pocket money they just received are great ways to trigger a conversation. If you’re out for dinner, why not play a game of “Guess the Bill”; giving them a little insight into the cost of these experiences and making it much more interactive.
Next up, show them the money. Nowadays cash is a bit of an unknown entity, what with the introduction of contactless cards and online bookings. However, contactless suggests the concept of never-ending funds, so having notes as a demonstration is a great visualisation for your kids to understand the concept of budgeting.
What about setting a pocket money routine?
We don’t know how long this could go on for, and although they may not be able to get out and about to spend their pennies, it could be a perfect opportunity to start setting up a pocket money system if you haven’t already. Kids have more time to earn extra cash, and you have more time to introduce a routine. The time in could also help to learn how to save their money, they may even thank you for it in the long run! There’s no rule on how much to give, it’s really dependent on your own budgets and what you want their money to be able to cover.
The average allowance guide is shown below**:
Maybe they have some goals to save for?
Starting goals is a great way to help kids understand saving. The idea of waiting for a child is a little hard to grasp, so discussing what they’d really like to be able to buy and setting that as a goal is a great idea. It’s not only a great saving technique but introduces interest and discourages the instant gratification nature that society may be presenting.
Good old-fashioned Chores.
For generations, parents have been rewarding their children for chores. This is still the case, with a quarter of parents making their offspring learn the value and reward of hard work. With all the extra time they have on their hands this summer, there are sure to be plenty of little jobs they can help out with, or even bigger jobs such as washing the car, that provide a sense of achievement as well as a “payslip” at the end of it.
*https://www.moneyadviceservice.org.uk/en/corporate/uk-parents-struggling-to-talk-to-their-children-about-money
**data from https://www.roostermoney.com/gb/
