TOO many parents fail to educate their children about money matters, a new study has found.
Blacktower Financial Management surveyed 1,500 UK parents to understand how they talk to their children about money.
The survey found that 51% of UK parents struggle to talk to their children about money, with 63% not regularly discussing finances as a family.
A company spokesperson said: “As your child approaches an age where independent living isn’t so far off – whether that be at university or just renting their first property – it becomes more important than ever to pick up the conversation around debt, finances, and money.
“There are several practices which can be put into place now, while your child is still young, to allow them time to get used to money management and financial literacy. Here are a few top tips from the experts:
1. Take your children shopping
Letting your children accompany you when you visit the supermarket can be a great lesson in money management. Let them pick what they want to eat for lunch over the next week, but set a spending cap.
For instance, they may have to choose between fruit or chocolate. Not only does this help them learn about budgeting, but they’ll also develop an idea about value.
2. Let your children make mistakes
The best way for children to grow and mature is to let them make their own mistakes. Watch from afar and let them spend their pocket money how they please. As and when they run out, and come to you for more, talk to them about why it’s important not to spend all your money at once.
The more freedom you give them, the more responsibility they’ll begin to take over their own money.
3. Introduce cash at an early age
The best possible way you can educate your children about money is to introduce the concept at an early age. Traditionally, children are first exposed to saving with piggy banks.
These are a great idea, because they allow children to develop a great feeling about finally reaching a certain amount, which will carry through to adolescence and adulthood.