As a child I was incredibly good with money, I would always save up my pocket-money not wasting on things like sweets and waiting to buy something very special.
I put a lot of this down to education, my Aunts would explain to me all about the value of money, I thought it was so special and loved keeping my own financial accounts from as young as 10.
Fast forward 20 years and I am not so good, I lost my way a little, but I wish I hadn’t, my parents were not good (still not good) role models when it came to finances and I think that is a big factor.
I realised we were following a little down the same path with our kids and now with Addison entering school I think it is the right time as her little brain is a huge sponge for learning.
Think Money sent us a crafty piggy bank package, whilst Addison decorated her special little Piggy Bank we would talk about what they were for and the importance of money. Think Money are not alone, in a recent survey over 3/4 of parents asked, said they would like financial education to start in primary school.
Addison decided to decorate her Pig pink and have Gold Sparkles on hers like her favourite coins, when I asked her about money she didn’t fully understand the concept that coins added up would buy things but did understand that Mummy has to work to make coins.
Think Money asked us to share our Top Three Financial Tips for our Children
3 Financial Tips for Addison at 4
- Pocket Money – I am going to start giving Addison a very small amount of pocket-money now, maybe something like 50p/£1 per week in exchange for something simple like tidying her toys. This way she learns the value of earning and saving your coins to buy a treat.
- Waste – I think children can very easily waste things, food, toys etc – we have been trying to teach Addison that waste costs and we should not waste.
- Reselling or Donating – Addison loves it when we sell on her unused toys/clothes, we explain to her that they are going to other boys and girls and with the money we received we buy things for her current size/age. If we do not sell we always take her with us to charity shops that we donate to. It gives her an understanding of the value of items not matter if they are needed still.
Three Financial Tips for Addison as an Adult
- Pension – A regret of both Ashley and I is the fact we do not have private pensions, as young adults we did not fully understand the importance and now we have no budget to have them, but it is crucial whether in employment or personally we would like for our children to have a pension as soon as they are earning in full-time employment.
- Budget – In my early adult years I always stuck to a budget, I think it is a great way of making sure you don’t overspend, a great deal of the past 10 years I spend to many sleepless nights worrying about how we will pay the bills, sticking to a budget would have saved these worries.
- Credit – If you can help it always live to your means, credit cards can be a downward spiral. If you have to take a credit card, do make sure to research for the best deal and look at the APR.
I do hope Addison and all my children end up in a better financial situation than that of their parents. What financial tips would you want your children to know ?