Children undoubtedly learn about money from their parents and grandparents. Are you sending the right message to your children about saving for the future? Here’s a quick guide to help you teach your kids about saving.
From an early age you can encourage your child to save with a piggy bank. This allows the child to have their own money and they can enjoy saving up for bigger items.
Remember to help them count money and set goals for them to save up for, this way a child learns financial responsibility from a very early age. Setting goals is one of the most important ways to learn about money, and it helps children learn to become responsible for themselves, whilst providing a sense of achievement.
Many parents open savings accounts for their children from birth, but when a child is a little older, he or she may wish to open a savings account themselves. Traditional accounts with paying in books offer a very visible way to save and it’s easy for them to see how money grows by adding to it consistently over time.
Explain the different types of savings accounts and use the recent changes to Child Trust Funds to involve your child in the discussion.
Child Trust Funds (CTFs) were a tax-free savings product set up by the Government for children born between 2002 and 2011. There are six million children with money invested in CTF’s who can now convert these accounts into the newer, more competitive Junior ISAs. Have a look at the Kingston Unity website for more information about this important new change.
Choice and control over the investment belongs with the person who has parental responsibility and passes to the child at the age of 16. But the recent changes offer a super opportunity to open up conversation, particularly with older children.
Supermarkets also offer a good opportunity to get children handling money, looking for special offers and working out ways to save money. Show kids how to check for value, how to compare offers and how to use coupons. Planning our spending can help us save up to a third. Involving children in saving both physically and through smart shopping can be very empowering for all concerned.
About the author
Kingston Unity has provided savings and protection products for its members since 1840. The Society has a proud heritage, mutual status and supports its members’ investment and protection needs.
Kingston Unity has around 100,000 members across the UK and provides financial services such as Investment NISAs, Investment Bonds and regular savings plans. www.kingstonunity.co.uk