WE NEED TO SHOW KIDS HOW TO HANDLE FINANCES

Research reveals that financial worries are affecting youngsters, with 53% regularly feeling anxious and 27% feeling hopeless. Emma says talking about money as a family is the key

ur kids are growing O up in a society drowning in debt, and that can lead to anxieties about money. We need to teach them about budgeting and saving, to set a positive example ourselves, and help them understand the value of money. Kids feel a huge pressure to fit in, and social media doesn’t help – they see cool trainers on Instagram, or their favourite Youtuber talking about a hot new brand, and they want them too. When they are old enough to access money – via loans, credit cards, or overdrafts – they can often spend without thinking through the consequences. Parents need to teach children to manage their finances properly. My kids know that I don’t have credit cards because I believe if you can’t afford it, you shouldn’t buy it. They appreciate that I shop at the most cost-effective places to maximise our money, and they understand I work hard so that we can enjoy family life. I give my boys £10 a week, which they can spend on anything they like, or save towards things they really want. When it’s gone, it’s gone and they know never to ask for more. I recently allowed them to start selling items they wanted to get rid of online, too. This is helping them to realise that they have power over their financial futures. If your son or daughter is old enough to get a part-time job, encourage them. This helps them to respect money and to think carefully about how they spend it. If you have debt issues, keep your kids away from such adult matters. If they ask for a new toy or pair of trainers, simply tell them that you can’t afford them, but don’t share your debt burdens. Avoid arguing about money in front of them, but should they overhear and ask questions, calmly reassure them that things will be OK; children need to feel safe. The most important message you can give children is that true happiness can’t be bought and that it comes from loving and connected relationships, which have nothing to do with owning the latest smartphone or designer trainers.