Talking about money with kids

In an increasingly cashless society, money is an intangible concept for children to grasp. In the days of coins and notes, kids could see money as something physical you require to purchase goods and services. Nowadays, we tap a card, and no exchange is seen so it’s even harder for children to understand how finances work.

Managing money is a lifelong skill needed for everyday life. As well as improving their maths skills, money teaches children to develop patience, delay gratification, help with self-control, and spend wisely!

According to Cambridge University, children gain an understanding about what money represents around the age of 6 years old. In order to help teach your children about money, we have listed some tips below; 

1. Pay pocket money as a "wage"
   A fixed allowance on the same day each week, like a wage will help with the responsibility of how they spend/save it. This teaches the value of money and shows it's not unlimited!
   
   
2. Track on-screen
   Pre-paid debit cards are becoming more and more common. With a debit card you can share their balance on-screen and can see numbers increasing or decreasing. 
3. Get them to earn
   Consider letting them do some small jobs around the house and paying them a set price. When you transfer the money and they see it pop up on-screen they will understand how doing jobs can earn money and enable them to receive funds.
   
   
4. Play board games together
   Despite the inevitable arguments, games like "Monopoly" and "Pay Day" still use old-fashioned play bank notes and also introduce tax, savings, debt, and mortgages.
   
   
5. Share spending decisions
   Most parents don’t share with their children how they make financial decisions; therefore, some children may think you have unlimited cash to spend. Sharing some of your own money management choices can be beneficial to their learning.