In school we learn about Pythagoras theorem, the periodic table and the complete works of Shakespeare, though some argue that too little time is spent educating young people on money and smart financial moves that will benefit them when they enter the 'real world'.
With the lack of official financial education in school, the onus falls back on the parents.
While interest rates and mortgages can be tricky for even adults to understand, by teaching our children about the importance of saving, the difference between debit and credit and the risk around revealing personal information online, we're essentially setting them up to develop a healthy understanding of finance.
- Speak to your children about everyday situations involving money so they grow an understanding of when and why money is required.
- Give your child a piggy bank and teach them the importance of saving by paying them small sums for chores or pocket money.
- As children get older, ask them to contribute some of their savings or pocket money to non essential items such as toys. This will teach them appreciation for money as well as the item purchased.
- Sign your children up for a bank account in which they can deposit pocket money. Seeing their savings grow digitally is fun and having money in the bank means they're less likely to spend it.
- Teach your children the importance of working hard. Money you earn feels better than money you've been given as you appreciate the work that went into earning it.
- Educate your children about the dangers of revealing personal information online, including account information, and why parents should be present when making a purchase (even for small transactions like a game or song from iTunes).