Parents and schools work together to raise financially savvy kids….
With a surge in the number of kids wanting iPads, skateboards, the latest DS, the new XBOX and of course Spotify Premium it is more important now than ever before to teach children the true value of money.
However, choosing to give your kids ground breaking financial advice when they are at such a young age can be a challenge. But, with Personal Finance Education (PFE) at the forefront of the school curriculum in secondary schools, it’s about time British parents began teaching their children what it is to be financially savvy.
It’s worth noting that from the tender age of 18 years children can begin applying for credit cards, loans and payday loans. The Money Advice Service found that nearly 75% of adults in their early twenties found themselves in some form of debt after making a ‘money mistake’.
Everyday money choices
Basic discussions regarding finances can begin from the ages of three and four years old hence why organisations such as Bamzonia are campaigning for PFE to be taught in primary schools. However, until this need is recognised it is vital that parents begin to teach their children the value of the pound.
This can begin with the idea of a piggy bank teaching children about having pocket money and allowing them to make their own decisions regarding what they would like to spend their earnings on.
PFEG Senior Education Consultant Russell Winnard commented:
“It’s about involving young people in those everyday money choices and opening their eyes to the reality of money and finance.”
Whilst the amount of pocket money a child will receive will depend greatly on their family and their income the Managing Director of FF&P Wealth Planning Richard Bertin advises adults to ask other parents how much they give their children.
Investment management solution company BlackRock released the latest statistics on British parent behaviour towards teaching their children money matters, revealing some shocking results:
- 53% of parents remind their children how much things cost
- 53% of parents encourage their children to save
- 51% of parents open a savings account for their children
- 36% of parents give their children a piggy bank
- 33% of parents give their children pocket money
- 31% of parents give their children an allowance to budget from
With these statistics in mind, it is vital that the parents of British children begin to implement financial education at home in order to complement what is being taught in school.