10 tips to help your child be money savvy!
Written by Claire Burgess, Family Consultant Burgess (with a bit of help from GoHenry!)
Teaching children about money from a young age equips them with essential skills for financial independence. Here are ten effective strategies to help your child become money-savvy (with a bit of help from GoHenry!):
1. Establish a savings habit: Encourage your child to regularly set aside a portion of their pocket money or money given to them as presents. This will help form habits and give them something to aim for if they are saving for a particular thing they want to buy (see number 4!).
2. Introduce budgeting concepts: Teach your child to plan their spending by allocating money for different purposes, such as saving, spending, and donating. This will help them in managing their money as they grow.
3. Talk about money: Involve your child in age-appropriate conversations about household budgeting and expenses. This will help them understand the value of money and the necessity of making informed financial decisions.
4. Set savings goals: Help your child to set specific savings targets, like buying a toy they would like or raising money for a charity. Achieving these targets can boost their confidence and reinforce positive saving behaviours.
5. Use educational tools: Resources such as GoHenry's Money Missions, which offer interactive lessons on earning, saving, and budgeting can help make financial education fun!
6. Encourage the entrepreneur!: Support your child in small ventures like setting up a cake stall or offering to do tasks for neighbours. These experiences will teach them valuable lessons about earning, customer service, and money management.
7. Talk about how earning interest works: Explain how savings can grow over time through interest. This can help motivate them to save more and understand the benefits of long-term financial planning.
8. Teach responsible spending: Support your child in making thoughtful spending choices by distinguishing between their needs and wants.
9. Be a good financial role model: It is helpful to show children good financial habits, as (with everything!) children often copy what we do.
10. Provide hands-on experience: Give your child responsibility of managing a small amount of money, making their own spending and saving decisions. Get them to help you plan days out for example or get them to purchase some shopping for you.
These 10 tips will help provide a foundation for your children in being confident and knowledgeable with money. Head over to GoHenry.com for more information, hints and tips and listen to our podcast episode where we spoke to Louise Hill, Founder of GoHenry – Listen here.
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