One thing I have always tried to do, however, is ensure that I teach my children good money habits and ensure that, when they head off into the world on their own, they’ll have the best chance of being financially sound.
To some, it may seem odd, or even daunting, to be teaching their young children about money matters. But it doesn’t have to be a lecture in economics, and it really will benefit them for years to come.
I recently stumbled across a video from Mrs Moneypenny which offers some great advice and money habits to teach your children - I found it really useful and I’m sure you will too.
How much pocket money?
It’s that age old question that parents have pondered over for generations – how much pocket money should I give my child?
Unfortunately, there’s no easy answer I’m afraid, it is all down to how much you can afford and how much you feel comfortable giving your child. Mrs Moneypenny suggests that a good place to start is by giving your child one pound each week/month for every year of their life.
It’s never too early to teach your children about budgeting. I’ve always encouraged my children to save their pocket money and budget so that they can afford the things that they want most.
A nice little tip that I picked up from Mrs Moneypenny was to encourage your child to split their pocket money three ways. Then get them to allocate one third to spending, one third to saving, and the final third to charity. I don’t know about you, but I love this idea and I’m determined to start implementing it straight away!
Flying the nest…
Whether it’s to go to uni, or to move into a place of their own, when the time comes for your children to leave the nest (and it will come sooner than you think!), you need to make sure that they are capable of taking control of their own finances – as capable as the rest of us, anyway!
One thing Mrs Moneypenny suggested, which I have to admit I’d never really thought about before, was introducing your teenagers to their credit report (you can do this online via a site such as Experian).
Showing them the report should help them to get a good understanding of how credit and finance really works. It will also help them to realise that the financial decisions they make today will have a long term impact when it comes to buying a house or car, or having a family, however far away that may seem.
A good approach here is to transfer their mobile phone contract into their own name – this will not only help them to gain independence and an understanding of budgeting and bill-paying, but it will also help to build up their credit report.
It’s down to you!
However much pocket money you choose to give your children, and however much financial independence you allow them as they are growing up, remember that you, their parents, are their most important influence…no pressure!
Disclosure: This is a featured post (with some excellent advice!)