Ahoy! We’ve hit another Friday, and with that we’ve collected the latest round up of this week’s news in children’s finance. See our top picks for this week below.
‘If you can’t afford it, don’t buy it.’ A recent survey that asked Brits what they thought was the most important financial lesson to pass on to children, 37 per cent sided with this classic. The runner-up favourites include ‘always live within your means,’ (23 per cent), ‘try to save at least something each month’ (16 per cent), and ‘look after the pennies and the pounds will look after themselves’ (9 per cent). Thinkmoney, the organisation behind the research, also released a video featuring children being interviewed about money, showing they could use some, well… guidance on the subject. When asked about the approximate value of a house, responses varied from £1 to £2,000, while guesses about how much their parents earned varied from 1p to £5. If only life were that simple!
The Guardian recently published a finance piece featuring interviews with five UK families with varying incomes on how much pocket money they give their children each week. One family with an annual household income of £75,000 admitted to giving their 9-year-old daughter 50p a week for completing all her chores, with opportunities for additional cash for completing extra tasks, such as watering the garden or helping clean the car. A single mum, however, admitted to giving her son £50 a month with no need to complete any chores. You can imagine her surprise when her son ‘wouldn’t forgive her’ for only give giving him £5000 for his eighteenth birthday. Very interesting insights, we’re sure you’ll agree and a compelling reason to empower your children to learn about earning, saving, and spending from a young age.
Simon Cowell has revealed he does not plan on leaving his unborn child any money in his will. Cowell, worth an estimated £350 million, says he would rather donate his savings to charity, as he does not believe in passing on money from one generation to another. I’m going to leave my money to somebody. A charity, probably — kids and dogs. I don’t believe in passing on from one generation to another, said Cowell. Call it tough love, or maybe the ultimate lesson in self-reliance!