How money advice for children helped parents cut debts
A PILOT course designed to help teach children about money has unexpectedly improved the finances of parents too.
The two-hour ‘Talk, Learn, Do’ module was run by the free, Government-backed Money Advice Service. Its aim was to encourage parents of three to 11-yearolds to talk to them about money, and to help them take on the responsibility of managing it – for example through pocket money. New analysis of the programme, which took place in Wales in 2016, shows a marked decrease in over-indebtedness among parents one year later. This was compared against couples who took a parenting course,without the ‘Talk, Learn, Do’ module.
The organisation is now calling for a national rollout of the programme.
One couple to benefit from the session said it had been a ‘reality check’ about their own swelling credit card debt. From those who completed the additional training, after 12 months more children were able to differentiate between an item they wanted, like a toy, and something they needed, such as food.
The number of parents giving their children pocket money increased by 13 percentage points. Previous research has shown a strong link between regular pocket money and better financial habits.
Parents are now more likely to discuss the manipulating influence of TV advertising with their children since taking the course. Sarah Porretta of the Money Advice Service says: ‘Earlier really is better when it comes to introducing children to money.
‘You do not need to be a financial whizz to help them on the path to success – you can teach a lot through everyday activities.
‘Get them to help you make shopping lists or involve them in household budgeting – and do not think you have to shelter them from conversations about money.’ Advice to parents wanting to improve their kids’ money skills includes playing shop with younger children, adding price tags to items and counting coins.
Older children can be given budgeting tasks, such as coming up with ways to save money and comparing prices for online shopping.
The course material is available from today to all parents of children aged three to 11. Go to moneyadviceservice.org. uk/talk-learn-do.