Talking to primary school children about the benefits of saving money and investing may seem a bit premature, but there may never be a better time to educate them.
As parents we know our children’s minds are like sponges at this age, so installing invaluable life lessons now will go a long way to their financial wellbeing in adulthood.
The fundamentals of talking to children about money can be broken down into these 3 categories:
Whether it’s 50p or £5 a week, pocket money can help your children learn about budgeting as they start making decisions with their money. The amount is not important, the act of paying regular pocket money helps open up conversations about money around the home.
As well as giving weekly pocket money, parents could also pay their children extra for completing tasks and chores. Now, if you are like me you may have mixed feelings about monetising chores, however, it does help our children learn how money is earned and importantly, it is not always easy.
The art of saving and not spending money immediately is one that challenges us all. Teaching our youngsters the value of patience and that holding on to our money can ultimately lead to much bigger rewards.
There are many apps that allow you to save money for children now, or alternatively a good old-fashioned piggy bank and perhaps a chart to show how much money is in there will do just fine.
Now whilst it may be a bit premature to talk about interest rates and investing, a simply reward for saving will do. It may be an idea to set a milestone, whether that be financially or time related, when they reach this milestone, their money is topped up by £1 or £2. This teaches our children the basics of long-term saving = larger rewards.
For more information about how you can save and invest for your children’s future, either through a Junior ISA or Pension please get in contact.
Luke Henley DipPFS
Wellesley Wealth Advisory
For more information about how you can save and invest for your children’s future, either through a Junior ISA or Pension please contact Luke Henley on 01444 244551
Wellesley Wealth Advisory is an Appointed Representative of and represents only St. James’s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Group’s wealth management products and services, more details of which are set out on the Group’s website www.sjp.co.uk/products. Wellesley Wealth Advisory is a trading name of Wellesley Investment Management Ltd.