Regular readers will know that I believe that children need to start learning about money and the value of goods from a young age. If we want our children to learn how to become good with money, avoid unnecessary debt or bad attitudes to credit and money we need to equip them with the skills from a young age. Statistics tell us that the bank of mum and dad are still relied on. The parents surveyed explained how they have stumped up over £6,000 to help their ‘financially independent’ children out and it seems that a lack of basic money management skills is often to blame.
- 41% of parents whose children have asked them for financial support were called upon as their child had no savings to cover for an unforeseen expense
- Almost a quarter (24%) admitted that their child is simply bad at managing money and ran out of money
- 15% of children had to ask for help as they had got themselves into a debt they couldn’t afford to repay
- 22% of parents have also supported their children with a deposit to help them get on the property ladder
Sarah Willingham of Dragons Den fame, along with Experian developed the free Jangle App which you can read about here. The App teaches money management to children and encourages them to save. The app allows you to set saving goals that could be determined by a specific toy that the child is saving for. Likewise the app suggests ways that children can earn money from family and friends. These fun activities develop children’s skills in a positive and fun way.
Erin is looking to save some money for her upcoming holidays and so we had a look at the activities Jangle has suggested for her young age and we have put a few into operation! Here is how we got on!
- Making and selling cakes which is something Erin always loves doing. Children can work out how much the cupcakes cost before deciding how much to sell them for.
- De Clutter Bug, Erin is very good at sorting things out and giving things away. This is a quality I really admire and I have bought my children up to be charitable in many ways. It is important to me that my children think of others less fortunate. We also like to buy in charity shops too!
Erin sold her cupcakes and added the money to her money box. Erin has been learning about money in Maths and loves counting out her coins! I am hoping this is all developing good money management skills that she will carry with her. Half term is a great opportunity for your little ones to make some money.