5 easy ways to talk to kids about money
Nearly four out of 10 parents (37%) say they are more likely to discuss finances with their children as a result of rising costs, according to a new survey from F&C Investment Trust and global asset manager BMO.
If you are unsure how to broach the subject, here are five easy ways to talk to kids about money in the current financial climate...
Talk about it: “If you are out and about with young children, talk to them about what you are buying and give them the opportunity to pay for items themselves,” says Ross Duncton, managing director, head of marketing and direct at BMO (bmogam.com). “This way children will learn that once the money is gone, it’s gone.”
Play shop: “Set up a play shop using items around the home and talk about how much the items cost. This is a great way to help children see the importance of essential items and treats, and even teach them how to budget and get the best value for their money.”
Set up a play bank: “Set a timer and challenge children to do a simple task in exchange for some play money. You can give them the option of spending this at the pretend shop, or saving it.
“This can give you an opportunity to talk about the importance of saving up for something you really want.”
Read relevant children’s books: For example, Cinders McLeod’s Moneybunny books aim to teach younger children about financial literacy. You don’t need to spend a lot on books – visit your library, look in charity shops or start a book swap with friends.
Plan meals and budget together with older children: You could challenge each other to see who can create the most costefficient meal for the family. Ross says: “This is a fun way to teach the importance of budgeting before they leave home.”