Money Matters – How to Educate Your Children

0

While the coalition government of 2014 moved to make financial education mandatory in UK schools, teachers have since struggled to impart such lessons on children nationwide.

This is creating significant gaps in knowledge, particularly when you consider that so-called “generation debt” (including Gen Zers who are aged between 18 and 23) currently hold an average total of $16,043 in financial liabilities.

So, it’s important that parents adopt a proactive approach and look to help their kids in building the foundation for financial security in their features. The question that remains, of course, is how can you go about achieving this objective?

Don’t Try to Hide Money Challenges From Kids

You’ll have to bear with us here, as it may be your instinct as a parent to shield your kids from any money challenges that you’re experiencing in the household.

While there may be some truth to this depending on the nature of the issue and the age of your children, older kids are a little more capable of processing simple financial challenges, while this can help them to understand the role of finances in households and their ongoing importance.

This also affords you an opportunity to lead by example as a parent, as you look to spend responsibly, showcase leadership and display positive money management behaviours in real-time.

Afford Kids Some Responsibility

As children grow and develop an understanding of finances, it may also be the ideal time to afford them some responsibility and a small amount of money of their own.

For example, many parents choose to pay their kids in exchange for simple chores, in an attempt to teach the rudimentary value of money and mirror the functionality of the forex labour market.

You could also give your child a prepaid debit card, which features a fixed amount of money for them to control and spend as they wish.

This enables them to gain real-world experience of money management on a small scale, while introducing skills such as budgeting and prioritising expenses.

Try to Make Financial Education Fun

On a final note, it’s important to note that financial education should be an evolutionary and ongoing thing throughout a youngster’s childhood. Sure, it must change as your kid grows older, but it must remain a permanent feature of your child’s education.

It’s also important to ensure that this type of education remains enduringly fun throughout, as it’s well known that this creates a more engaging experience for kids and drives a higher rate of knowledge retention over time.

Fortunately, there are several games and interactive apps that make financial learning fun for kids, and combining such entities with practical money management experience can help to set your children on the way to a secure fiscal future!

Leave A Reply