With George Osborne’s budget cuts hitting families more than ever, many mums are re-budgeting their budgets just to make ends meet.
But how do you get your children to understand that money is tighter than usual, and that they can’t have everything they want all the time?
Here are some quick tips to get the ball rolling:
Introduce the subject of money: Kids don’t learn about money in school. It’s up to the parents to introduce them to the concept of money.
Get them saving: A piggy bank is a good way to introduce the value of money to children. As it fills up with money that they have put in it themselves children come to understand what they can achieve if they save money rather than spending it all the time. You can go a step further if you haven’t already done so and open a savings account with some of the money as well.
Introduce them to trading: If you can afford it, buy your child stocks in a company that they’re interested in, like Nike or Disney. Let them follow it and see how it goes up and down. This is great for older children who can learn more about what happens to the money that they save, and how it earns interest. If you don’t know much about trading, you can arrange an appointment to speak to an adviser at your local bank or building society branch who will be able to go into detail for you both.
Communication is key: Tell your children about household expenses when they’re old enough to understand. The dinner table is a good place to start the conversation.
Don’t hide money problems: Don’t try to shield your child from discussions of family finances – this doesn’t mean you have to scare your children if things are really bad, but if it is just conversations about what bills need to be paid and when etc, then it’s healthy to let them hear about this so they understand that there are things that are more important than the latest toy they’ve been nagging you for.
