Why we should talk to our children about money
22 Oct 2015

By Will Davies

Money is a subject that many of us find it difficult to talk about but certainly in this day and age, I think it’s one of the most important topics we should be discussing with our children. After all a parent or guardian is a child’s first financial role model and though you may not consider yourself a financial genius, you’ll still have essential experience to pass on.

Teaching our children to be financially astute can start with the basics such as the concepts of earning, spending and saving money. More often than not your children will probably receive money from a relative for their birthday, or at Christmas. They then have a choice whether to save that money or spend it. They will probably go for that all important new pair of trainers but (pretty much as every parent does) advise them of the value of saving so they can see pile increase in the future. It’s hard I know but you could try to get them to set realistic goals, like saving for a larger purchase such as a bike, or keeping money aside for a trip to the cinema or making a donation to charity if they’re that way inclined. The hook my friend uses to get his children to regularly save is that it will put them on the path to independence - the Holy Grail of any aspiring child or teenager.

Being open with children about money and setting them on the path to financial prudence will stand them in good stead and remove that reluctance for them to engage in it. What’s more it might just help teach them the value of money and that can only be a good thing for next generation.