From pocket money to pay: what to teach your children about money
Pupils in England will be taught about managing money in schools from 2028, but you don’t have to wait until then to help your children become more saving-savvy.
Following a review of the national curriculum, the government has pledged to provide children with financial education at primary and secondary level. The aim is that the changes will ensure young people have the “skills needed to get on in life”.
The reforms have been widely welcomed, especially as it has been over a decade since the national curriculum was last updated. “When was the last time you used trigonometry to solve a real-life problem? Rarely will an adult ever apply the sine, cosine, or tangent ratios - yet everyone needs to navigate interest rates, credit and budgeting,” says Maike Currie, vice president of personal finance at PensionBee.
You don’t have to wait until money lessons are taught in school to help your child get to grips with the fundamentals of finance. Here are a few ways to help them establish good financial habits as they get older, along with free resources that can provide further support.
- Shop around for the best deals
When you go to the supermarket, talk to your children beforehand about how much you have to spend on your shop, and encourage them to help you find special offers on the items you need. If you’re paying in cash, ask them to count out the money and work out how much change you should receive.
- Give them control over their own money
When your children are old enough, usually once they reach double digits, it’s a good idea to give them a regular amount of pocket money to manage themselves. This helps them learn to save for things they really want and understand the consequences of overspending. There are several apps that can support this, such as GoHenry and NatWest Rooster Money, though some may charge a fee so check before signing up.
- Teach them about debt
As well as making sure your children understand about saving and budgeting, it’s a good idea to sit down with them and explain how different types of debt work. For example, if you have a credit card, show them how much interest is charged on borrowing. If you have a mortgage, talk about deposits and the need to demonstrate a regular income before being approved for one.
Where to go for more help
If you’d like further support in teaching your children about money, there are plenty of free resources available. For example, the government’s Money Help service Talk Learn Do provides lots of tips on how to talk to three to 11-year-olds about money, and how to involve them in decisions about spending and saving.
Many banks also provide lots of information to families wanting to boost their financial knowledge. Sites worth looking at include Barclays Life Skills, Financial Education HSBC and Lloyds Bank Academy.
There’s also a free to download textbook called ‘Your Money Matters’ available at Young Enterprise which was funded by Martin Lewis, founder of MoneySavingExpert.com. It covers a wide range of topics including saving and spending, borrowing, good and bad debt, insurance, and investing.