Saving for the little ones

If you really want to teach your child about money, think about giving them some of their own. That could be as a little regular pocket money, or as a reward for helping out around the house.

When your kids are a bit older, why not encourage them to make money outside the house. Even before they’re first job, kids can earn a bit of extra cash from washing grandpa’s car, making cards to sell at school, or walking a neighbour’s dog.

And don’t be afraid to have some fun with it! Now is a great time to show kids that making money doesn’t have to be boring. Work can be something you enjoy, as well as something you need to do.

While cash and piggy banks have their place, setting your child up with a bank account is a great way to teach them about money.

When you do set up their first account, try to involve your child in the experience. Explain what a bank account is, and how it can help to keep their money safe. Show them how to check their balance, and make it easy for them to do it whenever they want.

It’s important that children feel ownership over their money – it is theirs, after all. If your child is old enough, talk them through the idea of interest. Explain how the money that goes into their bank account grows over time because the bank will pay them interest.

Letting kids handle their own money means they’ll make some mistakes – but that’s okay.

Don’t get us wrong, it’s hard to watch your kid mess up when it comes to money. You’ll be tempted to step in, but do your best to give them the space to make their own mistakes – sometimes, that’s the best way to learn. Just make sure you’re there when things go wrong.

Instead of protecting them from failure, you can help them pick up the pieces and figure out what they can do differently next time.