Will our children grow up to be good with money?
In America, April is “financial literacy month” which aims to highlight the importance of establishing and maintaining healthy financial habits and this has inspired many international institutions to start thinking about teaching sensible money management. While you may be wondering what this has to do with our beautiful children’s toys, a recent article in the Huffington Post made a point that really hit home with us here at The Toadstool: Are our children going to grow up financially sensible and in this day and age of online banking and credit cards, how do we as parents teach our children about financial responsibility?
Help your child learn to be financially responsible.
American author Neale Godfrey (who has written over 26 books on financial literacy intended for both children and adults) advocates that we start teaching our children young. In fact as soon as they start saying “I want”, Godfrey suggests it’s time to start explaining the meaning and consequences of money, saving and the importance of earning.
She also suggests a 2 tier allowance system from when children are as young as 3yrs, which involves doing some house hold chores without getting paid, to teach important values about being members of a community and family and also doing some chores that they do get paid for.
Common sense versus busy lives.
Whilst her suggestions really amount to common sense, they do serve as a timely reminder. In the helter skelter of parenthood, how often do our children see us pay with cash and how easy is it to give in to the demands of your child for a cheap toy, gadget or gift without them really having earned it. Sometimes (indeed often) it’s easier just to do the household chores ourselves rather than keep nagging our children or just give them a £1 to go to the shop with after school. But of course all these bad habits do slowly erode any lessons we are trying to simultaneously teach our children about money and values.
The next couple of days week we’ll be blogging more about a feature which is another great aid to help you teach your child about financial responsibility. It’s an online banking system which allows your child to save and spend while you remain informed, involved and ultimately in control of their spending. How about spending pocket money online, at The Toadstool e.g.
In meanwhile please share with us how you are teaching your children to be responsible with money. All parent will love each other’s tips…