Until the pandemic, many Western children had enjoyed relatively carefree lives, but things began to alter dramatically. As the bulk of us deal with increased living expenses, we’ll tighten our purse strings and begin to budget far more carefully.
Children should be taught how they can help their families cope with the rising expense of living, and how this affects their lives as a whole.
We’ve gathered some advice from financial professionals on how to talk to your kids about inflation.
Begin With the Fundamentals of Money and Finance
The age at which you begin teaching your children about money will play a role in how you do so. Getting children used to handling cash and coins is a fantastic place to start. Teach children how to make and spend money so they can see the value in it.
Disclose Even the Most Insignificant Monetary Matters
Make small financial decisions, like which brands and goods to buy when shopping, a part of your child’s daily life. As a result, your child will be able to comprehend your financial decisions while also feeling empowered to make some of their own.
If you ask your older children to keep track of the products you purchase, they can assist you in sticking to your budget as you shop. This will not only help children with their math abilities, but it will also help them realize that not everything can be afforded on a tight budget.
Try Out Some Basic Games With Younger Kids
Children learn the value of money through playing games like counting pennies, which are simple enough for parents to implement. Use 1p coins and ask your youngster to match the amount of coins to a higher-value coin, like 10p/50p.
Be a Positive Role Model by Managing Your Own Finances Well
No doubt about it, children pick up money habits from their parents in the most direct way possible. Getting your children involved in even the smallest of daily tasks, such as checking their receipts or saving money, can help instill good values early on.
It’s okay for your child to ask questions in this environment. Open communication is a great method to teach your child about financial concepts, even if you don’t have all the answers.
Modest Tasks Can Be Rewarded With a Small Amount of Cash
It’s a win-win situation for both you and your child if you reward your child for doing chores around the house with a small amount of cash. You may assist your youngster understand where money comes from by creating a simple plan with a specific amount of money for particular jobs, as well as monthly or weekly caps.
Teach Children That Their Actions Have Repercussions
It’s never been a better moment to teach children about the workings of a household. In addition to saving you money in the long term, reminding children to turn off their TV or games console after use will teach them about bills and the environmental impact. Sustainability and protecting the environment will also be taught to them. When it comes to explaining your energy bills, you may even show them what the numbers on your gas and electric meters indicate.
Pocket Money Can Be Used as a Teaching Tool for Youngsters to Learn How to Save
Additionally, it’s a terrific opportunity to teach youngsters about the importance of saving money by including them in home chores and giving them pocket money. A traditional piggy bank, or a chart that your child can fill out to keep track of how much money they have saved up, can be an option if your child has showed an interest in a more costly purchase.
Learn About Saving and Spending by Going to the Store
Taking a trip to the store is another great approach to teach a kid about the importance of saving money. As long as they have enough cash on hand, they won’t be able to borrow any additional money from the bank. It is easier for them to make wise judgments about spending and saving if they feel in charge of their own resources.
Digital Tools Can Be Used to Teach Older Children
It’s possible to teach older kids about banking and credit cards using a variety of online resources. For children six and above, GoHenry is one of the most popular products on the market, which costs £2.99 a month and allows parents to strictly limit spending, monitor what their kids buy, and where they spend their money.
Educate Older Children on the Benefits of Reselling Their Old Toys for Cash
If you don’t want to offer your child pocket money, teaching them how to make money on their own is a good alternative. Your child could be asked if they have any old toys, books, or clothing that they’d like to sell when they’re old enough. You can then sell these items on eBay or Facebook Marketplace on their behalf. Besides giving your child a sense of self-reliance, this is an excellent opportunity to teach your youngster about the dangers of using the internet.