Thimbl. Press Release (March)
Teaching Children About Money Management
91% of UK parents think personal finance should be taught in schools, with 48% of students also backing the idea.
The worrying reality, however, shows that under half of British children aged between 7 and 17 years old have never been taught about money and finance.
Children are never too young to start learning the value of money.
Alex Kosuth-Phillips, a personal finance expert at thimbl.com, shares six ways that you can teach your children about the importance of money management.
1. Incorporate money management into playtime
“Teaching children about finance has the potential to be dull, but this really doesn’t have to be the case. Basic understanding of how money works can be woven into play in fun and imaginative ways.
“Playing ‘shop’ is an activity that many children enjoy, and it can be hugely beneficial to a child’s understanding of how money works. All you need is an assortment of small treats, such as individually wrapped sweets, and some spare coins. Price the items up and encourage your child to ‘pay’ for each using the correct money. Once their confidence builds, you could make the rules a little trickier by asking your child to work out how much change they’re owed after each ‘purchase.’”
2. Take them shopping
“Children and supermarkets are rarely an ideal combination as the temptation of sweets, magazines, and toys can wreak havoc with your budget.
“Distract children by asking them to help you. Talk to them about the difference between own-brand and labelled products, and how these vary in price. Ask your children to help you find the most cost-effective items by comparing different prices and brands.
“These are skills that could stand children in good stead when it comes to learning about budgeting in the future.”
3. Pocket money
“Explaining where money comes from and how it’s earned can teach a child the importance of a good work ethic, and the pride of working hard to pay for something they want.
“Encourage your kids to complete various chores in exchange for pocket money. You could reward them per chore; for example, £1 for each day they make their bed in the morning. Alternatively, you could pay a set weekly amount as a reward for helping around the house - washing the pots or helping to clean out the rabbit hutch.”
4. ‘Wants and needs’
“The ‘wants and needs’ rule has been a popular budgeting technique that many people have applied to their shopping habits during the cost-of-living crisis.
Helping children to establish the difference between wants and needs can be invaluable, and may instil good financial judgement within them from an early age.
“Ask your child to make a list of the things they need. This could include items such as a new school bag to replace an old ripped one. Once the needs have been budgeted for, anything left over can go towards their wants - perhaps a packet of Pokémon cards?
“Illustrate that needs should be prioritised first, and any leftover money can go towards paying for the nice-to-haves.”
5. The importance of saving
“Practicing ‘wants and needs’ ties in nicely with saving money. According to data released by Starling Bank, children in the UK have an average of £148 in savings.
“Explain to children that saving doesn’t mean restricting ourselves; in fact, putting money aside and watching our funds build up can be a really exciting process. Ask your child to think of something they’d really like to own or do. This may be a scooter, a games console, or a day out at a theme park. Sit down together and work out how much pocket money will need to be saved each week before they’re able to afford what they want.
“A great way to get children on board with the concept of saving is by buying them a traditional piggy bank. Hobbycraft sell ‘paint your own’ money boxes in a range of designs, including dinosaurs, sloths, and unicorns.”
6. Money saving savvy
“Get your child on board with general money saving habits around the house to further their financial awareness.
“Little ways children can get involved with household thriftiness include remembering to turn the lights off when leaving empty rooms, unplugging devices that aren’t in use, and turning the taps off while brushing teeth.
“Who says saving has to be boring, anyway? Did you know that reducing your shower time to four minutes could help you save up to £70 a year? To help you keep to target, we’ve scoped out four songs that are exactly four minutes long. Can you get in and out by the time ‘The Final Countdown’ comes to an end? Kids will love this challenge!”
· The Final Countdown – Europe
· The Lucky One – Taylor Swift
· Material Girl – Madonna
· Circle of Life – Elton John
thimbl. has shared tips on how to teach children about money management.
-ENDS-
About thimbl.
The thimbl. credit card and the thimbl. Loan are issued by Vanquis Bank Limited. Digitonomy Limited (trading as thimbl.) is a credit broker not a lender, and provides its services to Vanquis on an exclusive basis in respect of each of these products. Digitonomy is paid commission from Vanquis for these services. If Vanquis are unable to provide you with one of these products, Digitonomy will try to find you an alternative product and will receive commission from the provider of that product if you enter into an agreement for it. Digitonomy's registered office is: Steam Mill Business Centre, Steam Mill Street, Chester, Cheshire, CH3 5AN. Registered in England and Wales, under company number 08385135. Digitonomy is authorised and regulated by the Financial Conduct Authority, and is entered on the Financial Services Register under reference number 690249. Licenced by the Information Commissioners Office, (registration number ZA007309).
Website: https://www.thimbl.com/
Alex Kosuth-Phillips - Personal Finance Expert at thimbl.
Alex is the Compliance Manager for thimbl.com and is responsible for ensuring our website follows Financial Conduct Authority (FCA) regulations. He is passionate about ensuring that we treat all our customers fairly, and do all we can to ensure a positive experience and outcome for our customers.
Alex has been featured in various news articles and even on BBC television, providing information and guidance on how to avoid financial fraud and scams.