In an interview with the BBC, Kirsty Bowman-Vaughan from the Money Advice Service offers five tips on teaching children about saving money.
- Pocket Money
Before they can save, children need money in the first place. Give them regular pocket money, no matter how small.
2. Saving for a treat
Give them responsibility for saving up for something they want - without spending, saving just becomes collecting money. Let them have that wonderful experience of buying something they’ve saved for.
3. Make it fun
Put your children in charge of putting their money in a safe place. By registering for a children’s savings account, young savers can earn both a competitive rate of interest whilst also having a physical passbook which they can be responsible for. Your children will quickly realise that money isn’t a toy and it needs to be looked after.
4. Let them lose it
Let them make mistakes and don’t step in to bail them out, this is one of the best ways that they can learn. When it’s gone, it’s gone!
5. Show them the money
Don’t make money invisible, your child will learn from you. If you’re working on your household finances, bring them over and explain what you’re doing. Savings shouldn’t be a secret!
Why not give your kids a Sure Start with our exclusive account for under 21s? In addition to receiving a competitive rate of interest, children will also receive their very own Vernon Bear money box.
The Government’s Money Advice Service provide free and impartial money advice.