It’s never too early to start teaching your child how to be sensible with money – a habit that will give them a head start when they come to manage their own finances. And it doesn’t have to be boring…

Give little ones the coins to pay their own fare on the bus, or let them pay for their own sweets in the shop. Letting them hold the money themselves and see it leaving their hands will make them feel grown-up as well as teaching them about money.

Many kids have savings in a bank or building society nowadays, but giving them a good old-fashioned piggy bank or moneybox all of their own to put change in teaches a far more powerful lesson about money management.

Encourage older children and teenagers to earn their pocket money by helping around the home, for example: doing the dishes, tidying their room, washing the car or babysitting younger siblings. They’re much more likely to be careful with their money if they’ve earned it themselves.

Involve them in decisions about large family purchases. When you’re planning to buy a new car or item for the home, ask the kids to help you compare prices and discuss which options offer the best value.  Most kids enjoy voicing their opinions and it will help introduce them to the idea of shopping around.

Teach them that sometimes you have to wait to buy something you want.  If they’ve got their heart set on something their pocket money won’t stretch to, such as the latest gadget, toy, trainers etc, help them work out how long it would take to buy it if they saved some of their pocket money each week. Make a progress chart to keep them motivated.

If you enjoyed this article, why not use one of the buttons below to share it with your friends?