Dr Elizabeth Kilbey’s top tips to teach your kids the value of money
7 August 2018, 17:45 | Updated: 21 August 2018, 16:56
Ever struggled to teach your kids basic money lessons? These genius tips will help!
Teaching kids the value of money can be hard, especially when they’re used to the bank of Mum and Dad paying for everything.
Child psychology expert, Dr Elizabeth Kilbey, has shared her three top tips for teaching kids about budgeting.
Spend a day using cash only
Set aside a specific day – preferably during the school holidays – and only use cash for transactions. Encourage your child to help you pay for things by working out which cash is needed and how much change to expect. It will also help children become more comfortable interacting with shop assistants.
Dr Kilbey says: “As children become more confident with managing coins and notes they will be able to make financial transactions themselves. And this is something that needs to be learnt as well. Using money is more than just notes and coins, there is the social interaction element of engaging with people when purchases are made.”
The more they use cash, the more confident they will be spending money!
Give your kids some money to budget with
The best way to learn is by doing and there is a big difference between the money that you give your children to complete transactions (like in Tip 1) and the money they are actually responsible for making decisions about.
Giving your kids some money to regularly budget with, such as pocket money, and allocate them something they should save for such as snacks or cinema tickets.
Dr Kilbey says: “They can develop their maths skills through adding up the cost of the items they want and working out if they have enough money. And very importantly, they can learn the skill of delayed gratification. Being able to delay gratification is essential in being able to make good financial decisions and it’s the key principle behind the mechanism of saving.”
Create a fun money themed pop quiz!
A fun money-themed quiz is the prefect way to open up the conversation about this topic and help your kids learn the value of money.
Children are very good at learning concrete information such as facts and figures and when it comes to money there is a lot to learn. And crucially learning these facts and figures can act as a platform to learn about the more abstract and complicated aspects of money.
It can be hard to talk to children about money and many parents don’t know where to start.
Try asking you kids some questions linked to thing they use every day or recognise – here are some examples to try…
- What’s the biggest coin or heaviest coin?
- How much does milk cost?
- Where do banks keep your money?
- Who earns more postman or footballer?
- What colour is a £50 note?
For more fun activities to help teach your kids about money click here, plus enter for your chance to win an incredible family weekend break.