Talk Money Week: How to talk to children about money

November 3, 2022 • Chris Bardsley

It’s Talk Money Week - and here at Fair for You, we’re encouraging our customers to open up the money conversation. Whether it’s with your friends, family or children, talking about money can reduce stress and improve financial well-being. Teaching your kids about money from an early age can help them develop good money management skills - and, hopefully, avoid the money stress you have encountered over the years. We’ve all been there!

What is Talk Money Week?

MoneyHelper’s Talk Money Week runs every November to encourage you to be more open about money with friends and family - and to get expert advice when needed. This year, Talk Money Week is from the 7th to the 12th of November. It’s an opportunity to start building money conversations into your everyday life, especially if you have money worries.

Talking about money with your loved ones can help alleviate some of the stress around your financial situation and address uncertainties. It’s a chance to improve your money management skills and financial well-being.

How can you get involved?

To get involved with Talk Money Week, you just need to have a conversation about money. You could open up a discussion with your partner or finally have that awkward conversation about money with a friend.

Visit the Fair for You Instagram throughout Talk Money Week for more updates and money tips!

How to talk to children about money

Parents who are confident in managing their everyday finances are twice as likely to talk about money with their kids, according to MoneyHelper research. Here are a few ideas to help you teach your kids about finance.

Use pocket money

One of the best ways to teach your kids about money management is to give them pocket money. This way, they can have their own money to spend and save as they please. Many parents opt for child-safe debit cards over cash-in-hand pocket money. With child-safe debit cards, you can monitor their account while still encouraging them to learn about responsible spending. Cards like HyperJar and Gohenry have a parent account as the control centre for your children’s accounts. You can pay their pocket money straight into the account and see what they’re spending it on.

Talk saving versus spending

It's important to teach your kids the difference between spending and saving. Teaching your kids about spending and saving can help them develop good financial habits that will last a lifetime.

Even those unpredicted costs - the ones that catch you off guard - are good to talk about, as we know all too well that being an adult isn’t all plain sailing! In this case, you might not have time to save a large chunk of money for a new fridge or washing machine. This is an opportunity to explain why opening up a conversation is vital, and how to spot a responsible source of lending as opposed to alternative sources (in case you missed it, we wrote a blog on one of these sources - loan sharks - covering what these are and how to avoid them. Read it here).

Providers like Fair for You offer flexible and affordable lending schemes to spread the cost of your household appliances - from ovens to dishwashers. Check to see if you’re eligible on our website today, and show your kids how to borrow safely and responsibly.

Little and often

It's important to talk about money with your kids early and often. You can start by explaining how you save money when grocery shopping. For example, you can show them how you compare prices and look for sales. You may look for the product that’s the best value for money by looking at the cost per gram over the cheapest sales tag. You can also explain how you budget for groceries each week.

If you’re struggling to pay for groceries every week, you could apply for a Food Club card with Fair for You. If your application is accepted, you could receive up to £75 interest-free credit to spend in-store and online at Iceland stores across the UK. Choose a day of the week that works best for your £10 weekly repayments- and join the responsible lending movement.

Lead by example

One of the best ways to teach your kids about money management is by leading by example. Show them how you save up for big purchases, budget for monthly expenses, and be mindful of your spending. Explain to them why it's important to save and be responsible with money - instead of spending with no plan in place. You can also involve them in household finances by having them help track spending and expenses or give them an allowance that they have to manage on their own. By teaching your kids about money management early on, you'll set them up for success later in life.

Use digital money tools

There are a lot of different digital money tools out there to help your kids learn about money management. It can be tough to know which ones are the best for your child, but we’ve got a few suggestions that might help.

Nimbl is a prepaid debit card and app for children between the ages of six and eighteen. It’s all about helping your child become confident and responsible with money so they can stay in control of it.

Equally, RoosterMoney is an excellent option for those looking at child-focused educational features, like a chore management system. You can set chores to be completed before your child receives their pocket money. Anyone can pay money into the account, like grandparents, aunties and uncles.

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The content of this blog does not constitute personal financial advice, and the views expressed in it are those of the contributor or author, which may not necessarily represent or reflect the views expressed by Fair for You Enterprise CIC.

This entry was posted in Finance, Budgeting Tips, How To's and Blog