2 July 2024
Margo Lestz
Head of Communications
If, as an adult, you’ve had to learn some financial lessons the hard way, you probably want to help your children, grandchildren, nieces and nephews learn about money matters at an earlier age. And the good news is that monetary concepts are easy to teach in everyday life.
By pointing out financial concepts in everyday situations, you can provide your kids with practical and relatable lessons that will help them understand how money works. Real examples and hands-on learning make these ideas easier to understand and remember.
We’ve gathered 10 practical tips below to help you get started. By incorporating some of these activities into your summer plans, you can make learning about money a fun and engaging experience for your children.
TALK ABOUT MONEY
Probably the most important thing a parent can do to help a child understand money is to talk about it. We make financial decisions and transactions every day so you will have plenty of examples:
If you are turning off a light in an unused room, it’s an opportunity to talk about how electricity costs money.
When choosing to buy a more expensive high-quality item over a low-quality one which costs less, you might explain how to weigh value against price.
When buying a snack at the movies, compare the price to how much it would cost in the supermarket. Explain the idea of markup.
PLAY BOARD GAMES
Learning about money doesn’t have to be all work and no play. Games can be an interesting and interactive way to learn about finances.
Board games are a way for the whole family to join in. Games like Monopoly, The Game of Life, or Payday can provide a chance to discuss daily financial decisions such as spending, saving, investing, and risk taking in a fun and engaging way.
WATCH MOVIES
Turn movie nights into learning opportunities by choosing films that contain valuable money lessons. For instance:
Aladdin teaches the importance of not using money to impress others.
Harry Potter and the Sorcerer’s Stone emphasises the importance of using money wisely.
Confessions of a Shopaholic illustrates the dangers of compulsive shopping and credit card debt.
After the movie, have a discussion about the situation the character in the film faced and their actions.
USE A POCKET MONEY APP
Pocket money apps are designed to help children learn about and manage their finances.
These apps typically include features such as: a prepaid debit card, parental controls, real-time notifications of transactions, chore and allowance management, etc. However, each app has its own unique features, so find the one that best suits your family's needs. This is a good article to help you compare the various apps: https://moneytothemasses.com/quick-savings/parents/the-best-pocket-money-apps-in-the-uk
Whether using an app or not, let children make purchases on their own. Whenever possible, let them go through the basic steps of paying for something.
READ BOOKS ABOUT FINANCIAL CONCEPTS
Combine literacy skills with financial education by reading age-appropriate books about money and financial concepts together. There are many books for young children designed to illustrate financial concepts and help them understand different financial terms. Make a trip to the library to find books on finance for kids.
Note: Jeff Lestz, our CEO, thinks that one of the best books for kids and adults is The Richest Man in Babylon by George S. Clason.
GO TO THE SUPERMARKETS
Supermarkets are great places to learn financial lessons. While shopping, have your child help you compare prices and look for deals. Let them get involved and learn the value of money, how to make informed decisions, the concept of getting the best value and how coupons help save money.
If your children are old enough, put them in charge of grocery shopping for one week. Give them a budget, let them plan meals, use price comparison apps, and clip coupons. Help them put together a meal plan and a shopping list, and make sure the plan is approved by you to avoid having your child’s favourite food or snacks every meal. If they manage to stay under budget, you might consider letting them keep the savings or sharing it with them. This will motivate them to get smart about money.
PLAN A FAMILY FUN DAY
Let the kids plan a family fun day within a set budget. Let them research options for where to go, what to do, and what to eat while staying within the budget. This will teach them about budgeting, and prioritising expenses.
Ask them to incorporate a list of some fun activities that are free or inexpensive. Explain that by reducing spending in one area, they will have more to spend on something else that they might rate as more important.
MAKE FINANCIAL CHOICES
Money management involves making wise choices, so help your children gain confidence by letting them practice. Make it normal to give your children choices about how to spend money.
Help them think through different scenarios:
Do you want to spend £10 on a small toy now or save your money to buy a bigger toy you really want for £30 later?
Do you want to spend your entire weekly snack budget in one day, or spread it out over the week to enjoy snacks every day?
By presenting these choices and discussing the implications of each one, you help kids develop critical thinking skills around money management and financial responsibility.
TEACH BUDGETING WITH SNACKS
Use snacks as an opportunity to learn about budgeting. Go on a grocery shopping trip with your kids to buy snacks. Explain that the snacks must last for x number of weeks, and there won’t be any more until a certain date, so they will need to manage their snack consumption. Point out that this is comparable to a pay cheque; when you get paid, you must make it last until your next pay cheque, so you have to manage your spending.
WORK SUMMER JOBS
Summer jobs are a fantastic way to teach kids about money. In addition to finding jobs at local restaurants or retail stores, kids can earn money in many other ways. For example, encourage your child to come up with a business idea such as dog walking, pet sitting, car washing, lemonade stand, etc. In addition, you might pay them for doing chores for you. This teaches the value of work and the importance of customer service (explain the consequences of unhappy clients). In some of these businesses, your children will learn about setting prices and gain an understanding of profits and expenses.
By incorporating some of these practical activities into your summer plans, you can help your children develop a strong foundation in financial literacy that will benefit them for a lifetime.
If you would like further information, contact your Genistar representative.
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The information provided on this website is for educational or informational purposes only. Please refer to our legal disclaimer for further information.
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