Learning about finances doesn’t have to be a dull or daunting task. With the right approach, it can be engaging and enjoyable. Here are five tips to transform the way your family think about finances.
Why start young?
Think of financial education as planting a tree. The earlier you plant it, nourish it, and care for it, the stronger and more fruitful it becomes.
In the UK, financial education became part of the national curriculum in 2014. However, a report by the Money and Pensions Service found that only 47%4 of children have received meaningful financial education at home or school.
Without financial education, your family are at a disadvantage. A study by Compare the Market and financial education charity MyBnk found that students who received financial education were more likely to save regularly and make informed financial decisions.1
Did You Know?
It has been scientifically proven that on average, children absorb new information faster than adults.2
Make It Fun
Teaching young people basic economics can be tricky. To help you along, here are five ideas to get you started. After all, who said finance has to be boring?
1. Online games and apps:
Thankfully, the internet has you covered. Apps like “PiggyBot” and “Bankaroo” allow kids to manage virtual money, set goals, and learn the value of saving. These tools turn abstract concepts into tangible experiences, making learning both effective and enjoyable.
2. Involve children and grandchildren in their own savings:
A Junior ISA (JISA) can be a useful tax-free saving tool for children or grandchildren. Why not get them involved in managing it? You can teach them the difference between cash and stocks and shares JISAs, how compound returns work, and the importance of working closely with a financial planner to get the best outcomes.
Knowing they will inherit the money when they turn 18 adds an additional layer of accountability and responsibility.
3. Family board games:
You probably already know Monopoly and The Game of Life – board games that discuss basic economics while offering an evening of entertainment. But did you know that playing such games can improve financial literacy by up to 20%?
4. Trust in real-life scenarios:
We understand the importance of sheltering your children from some of the scarier financial choices. But when it comes to the lighter side of saving – whether it’s planning a family vacation or deciding on a charity to donate to – these experiences provide practical lessons that stick.
5. DIY projects:
Engage in do-it-yourself projects that involve budgeting and planning. For example, building a small garden or organising a garage sale can teach kids about costs, profits, and the value of money.