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Finance Friday: Reviewing spending choices as children return to school

Welcome back to our weekly installment of pocket money news and financial education findings. The New Year usually comes with a long list of resolutions, and for many managing money more effectively is top of that list. But as we all know it can be a lot more difficult than it looks.

Reviewing your pocket money plans

As well as being the start of a new year and a chance to organise yourself at home, January can also be a useful time to review your spending choices, and with that comes pocket money decisions. One blogger at kidspocketmoney.org suggests going back to basics and reconsidering why children are given weekly pocket money. One big reason is a chance to encourage children to think about how to spend and save a budget. They suggest starting a pocket money regime as early as seven years old and to think in terms of need and want: encouraging children to spend first on what they need and use what’s left for what they want.

Teaching your children how to spend and save

This week children are all returning to lessons at school, but at least some teaching is still done in the home, particularly in terms of money management. Some say it’s never too early to start teaching children the basics of pocket money spend, but at  livemint.com as with goHenry the focus is on learning by doing – financial education can’t be learnt straight out of a newspaper or magazine.

One financial planner based in Delhi believes that the very first pocket money handed over to your child is the time to teach responsibility and the important of saving as well as spending your cash. This article even recommends teaching children the basics of inflation and investment at a young age – things they would benefit from understanding in the future.

A bank for children, inspired by children

Another story seen out of India this week tells the story of a remarkable group of street children who have formed their own bank to secure their money while they go to school. They’ve set up a bank called the Children’s Develoment Khazana, where children can stash small amounts of money safely. And it is all run by 13-year-old boy Sonu with the help of a child rights organization in Delhi – truly inspiring work.

Be sure to comment below with any thoughts on the stories – we love to hear from you.

goHenry, a unique earning, saving and spending solution. Perfect for parents with children from 6-18.

goHenry, a unique earning, saving and spending solution. Perfect for parents with children from 8-18.

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