Most Dads are aware that in a post-austerity economy getting by can be incredibly difficult, especially if you’re a single Dad. Even when you have a good job and command a respectable wage, it can be hard to make ends meet from time to time when the cost of living seems to climb higher every day and you seem to have less and less disposable income.
Times are tough right now and who knows what kind of future your kids will inherit when they grow up. They may grow up in a fair or foul economic climate, but as a responsible parent you can teach them to be financially aware whatever the future may bring.
Here are some easy ways in which you can raise financially aware kids…
Money can be a tricky concept for young kids to wrap their heads around. While we have developed so many ways to make spending money easy and convenient, they can also further mystify money matters to young minds. Tapping our debit card on a screen or using Apple Pay might be a cool way to get the shopping in, but they can bamboozle your kids.
Instead, pay in cash in front of them and get them used to handling money. Teach them the value of these obscure pieces of paper or discs of metal. This will help them to understand money as a real commodity and that we must lose it in order to acquire the goods we need.
Interest can make a huge difference. The interest rates on your savings account can determine whether your money grows or simply stagnates. The interest rates on your loans and credit card debt can either keep your debt manageable or cause it to spiral out of control. Interest can be a tough concept to explain to young children, but the better they understand it today, the more financially aware they will be tomorrow.
Explain to them the interest rate on your savings. Show them the websites of companies like Fast Loan UK which are open and transparent about their interest rates. Explain to them the importance of knowing your interest rates before taking out a car loan or credit card. It could just be the most important thing you do in securing their financial well-being.
Savings can be a lifeline when you need one and give you a feeling of financial security all year round. When you have robust savings it can go a long way towards alleviating money worries. However, kids are not motivated to save. Why would they? There are so many sweets and toys out there to tempt them!
As such, you might want to encourage or incentivise them to save. Set up a savings account for them and explain that for every £10 of pocket money they save, you will throw in an extra £5. This will get them to think more about what they really want and encourage them to save for it rather than spending all of their pocket money on sweets as soon as they get hold of it.
Get them into these 3 financial habits and your kids have every chance of weathering the economic challenges of tomorrow as financially aware and responsible adults.