MONEY MATTERS
FINANCIAL PLANNING
for young people
Establishing a healthy relationship with money begins at a young age, so it’s never too early to help the younger generation develop their financial skills. Lisa de Silva has explored some ways to help children and young adults learn to save, budget and manage their money FINANCIAL FOUNDATIONS The earlier a child starts to develop financial skills the better. From an early age encourage counting coins and matching the number of pennies to higher value coins, such as 10p or 50p. When out shopping explain to your child why you are choosing a less expensive brand of groceries and once they are old enough, ask them to keep a running total of what you’ve bought. This helps them to understand budgeting. Linking pocket money to chores is a
good way to teach children the value of money, how to earn it and how to save for an expensive purchase. Depending on their age you can get them a piggy bank, create charts, or use a digital tracker to watch the money grow. Older children can also be encouraged to sell unwanted items (with your help) to raise money for things they do want. This can encourage them to feel confident and independent in earning their own money.
BANK ACCOUNTS & PREPAID CARDS Bank accounts and prepaid cards are good options to help children learn about real world banking and for you to monitor what they spend. From the age of 11, a child can open a mobile-based bank account, with no overdraft facility or credit check. They come with a debit card which can be used to make purchases in shops and online. If you prefer, there is the option for a more restricted cash card, used only for cash withdrawals. Some accounts offer interest on the account balance, and this is valuable for understanding why savings are a good thing. Alternatively, a prepaid card is like a pay-as-you-go mobile phone. While these can initially incur a cost, they are available to all those over 6 years of age, if an adult applies on their behalf and the attraction is the parental control over spending limits. They work in the same way as a debit card and are useful in introducing children to banking and budgeting.
Linking pocket money to chores is a good way to teach children the value of money
March 2022 | SUSSEX LIVING 131
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