FINANCIAL LEARNING FOR PARENTS OF YOUNG CHILDREN

Hi, all a quick blog to encourage the next generation of parents to begin financial learning sooner rather than later for their children, you are never too young to learn the benefits of learning how to be financially stable.

Research has shown that childhood experiences significantly impact adult behaviour. People who have faced extreme difficulties during their youth, such as poverty, maltreatment, school exclusion, and police contact, are more likely to commit crimes later in life¹. These adverse childhood experiences (ACES) can contribute to serious offending and frequent criminal convictions in adulthood. It is essential to address these challenges comprehensively to break the cycle of poverty and reduce crime rates. We must try to ensure that we support the next generation to navigate through life; by fully understanding the challenges they may face in life. Below is further information if you wish to read more about Adverse Childhood Experiences.

Children exposed to poverty and trauma more likely to offend as adults - Nuffield Foundation

What are the benefits of teaching our children these skills?

Teaching primary school children about financial responsibility has several benefits. Here are some key points:

1. Early Financial Literacy: Introducing financial education especially in primary schools helps children learn essential money management skills from an early age.
2. Risk Prevention: Financial education can protect children from potential risks such as financial abuse including gang related abuse, fraud, and debt.
3. Confidence and Empowerment: Children who receive financial education tend to be more confident in managing their money.
4. Long-Term Benefits: Investments in children’s financial skills will pay off over time.

In the UK, there is a push to ensure that every primary school-aged child receives high-quality financial education by 2030. Let us empower our young learners with essential financial knowledge!

Here are some practical ways to teach kids about finances:

• Allowance and Budgeting: Give children a small allowance/pocket money and encourage them to budget. Discuss saving, spending, and setting financial goals. For example, they can allocate a portion of their allowance/pocket for toys, another for savings, and some for treats.
• Piggy Banks and Jars: Use physical containers like piggy banks or labelled jars for different purposes (e.g., saving, spending, donating). Children can visually see their money grow and learn to prioritize.
• Grocery Shopping: Take children grocery shopping and involve them in price comparisons. Discuss the value of buying in bulk, using coupons, and making smart choices.
• Savings Accounts: Open a savings account for your child. Explain how interest works and encourage them to save part of their allowance or any monetary gifts they receive. Below our some accounts in addition to savings accounts to assist you child in becoming financially responsible.

Junior Saver Account | Croydon Merton & Sutton Credit Union (croydonplus.co.uk)

Savings Account for 0–16-year-olds.

Do you have children, grandchildren, or a young relative living with you at your address in Croydon, Merton or Sutton?

Would you like to encourage them to learn how to manage money and realise the value of saving?

"If so, then you can encourage them to save by opening a Junior Saver account on their behalf." (“Becoming a Member | Croydon Merton & Sut”)

Junior Saver Account | Croydon Merton & Sutton Credit Union (croydonplus.co.uk)

Below are examples of Children's accounts which you may find useful for older children as it is linked to your account and the child will have access to a debit card.

Starling Kite Account free debit card and app for 6–15-year-olds.

You will need to have a Starling account to access the Kite account for your child. Your child can use their Kite card for cash machines and anywhere they see the Mastercard logo: the card can be used online, on the high street, on a bus, both in the UK and abroad, with no fees charged.

To keep your child safe, Starling has added a block for several merchant categories, enabling you to block certain transactions, particularly for older children, e.g., internet gambling sites and betting shops. You can also keep an eye on your child’s spending by accessing notifications and by examining their spending history.

For children aged 6 plus there is also the child’s Monzo account coming soon if you hold an account with them already thanks for the information, Hakim! again you must have an account with them already and you can join their waiting list if you are interested.

• Needs vs. Wants: Teach kids the difference between needs (essential items) and wants (non-essential items). Discuss how prioritising needs, which helps them to manage money better.
• Entrepreneurship: Discuss with children how to start small businesses (e.g., handmade gifts). They will help them to learn about profit, expenses, and customer service.
• Online Simulations and Games: Use age-appropriate online games or simulations that teach financial concepts. These interactive tools make learning fun.

Money Games for Kids | Learning Money | MoneySense (mymoneysense.com) 

My grandchild Miss K, has played Money games for Kids and loves this game, a lovely introduction for younger children to begin understanding the value of money

Remember, consistency and patience are key. Start early, keep conversations open, and reinforce positive financial habits!