Yet when it comes to educating our kids about money, few parents know where to start – myself included.
But we parents are the biggest influence on our children’s financial habits – so it’s crucial that teach them that money plays a variety of roles in life, whether it’s spending today or saving for tomorrow.
With this is mind, a few years ago, I set up a pocket money and jam jar system for saving with my seven-year-old daughter, Audrey.
As you can see, each glass jar is labelled to separate her cash – one for saving, one for spending, and one for sharing with those who are in need.
Anytime she gets money, whether it’s for doing chores or her birthday, she divides it among the three jars.It’s not a huge act, but it does start the process at a young age that it’s okay to spend some of your money, if you’re giving back to others and save for the future as well.
By encouraging saving, children experience the positive emotions – particularly satisfaction – connected with saving money.
HOW IT WORKED OUT
Well, I am happy to report Audrey cashed in her sharing pot for the first time a few months ago.
She was going on a school trip to the beach and every child in her Year One class were asked to bring in £2 each for an ice cream at the end of the day.
Audrey was worried that some kids wouldn’t have any money and may feel left out, so she emptied her jar and brought the contents with her in her lunch bag.
At school pick up, she was elated. She was able to afford to buy ice creams for two of her classmates who possibly would have gone without.
I was so proud of her – and very pleased that our money lesson seem to be resonating with her.