Think of your last three interactions with your bank. How did they take place? Did you walk inside and speak with a cashier? Was it over the phone? Or was it online? For that matter, do you even know where your bank is located?
More than 60 per cent of UK residents use online banking to pay their bills. What’s more, 80 per cent of those using online banking will do so entirely from their mobiles by 2016. Money management and payments have never been so discreet. Convenient? Yes. Quick? Indeed. The question is, how can we easily and simply keep track of payments and teach our children the value of money as they grow up in a society where mobile and online banking is the norm, not the exception?
The fact is we live in a world where the concept of money is becoming less tangible. So we have to ask ourselves the question, how can we teach our children the value of money in this context?
See our top tips below to help you along the way:
1. Talk Now! Start talking about money however old your child is; don’t assume that because they are little, they can’t understand.
2. Help them earn. Find ways to help your child earn money for themselves and then set small, achievable, short term savings goals…
3. Help them spend. It’s important to then help them spend it so you’re helping your children learn to work towards something that they want, which they are then able to purchase.
4. Wait! Once they have spent it and all their money has gone, your child needs to repeat this cycle so that they understand the cycle of earning, saving and spending.
5. Use technology. The entire process can be helped along by technology. Children are great with technology and using interactive online tools will help make saving and spending clear and visual for them.
Finally, however you decide to go about teaching your children the value of money, remember, make it fun! Choose hands on activities; take advantage of trips to the supermarket where they can help you compare prices and be included in some of the purchase decisions. Whatever you do, empower them to go and learn through doing and most importantly of all, encourage them along the way.