Last lesson of summer, financial responsibility
As the summer holidays draw to a close there is still time to teach children one last lesson of the summer, financial responsibility.
As the summer holidays draw to a close there is still time to teach children one last lesson of the summer, financial responsibility. Here are some easy tips from The Progressive Building Society.
Teaching your children how to be financially responsible is one of the best lessons you can provide to them.
We can all make good and bad financial decisions, the key is to learn from them. Providing our children with the ability to budget within their means is a vital life lesson and skill that we can help them develop.
Help you children develop healthy financial habits by involving them with the household budget from an early age. A practical example of directly involving children in the budgeting process is back to school shopping. Tell your child how much they have to spend on specific back to school items. For example, they can spend £40 for a school bag, £40 for shoes and £100 for a new uniform. If they want the £60 pair of shoes, they will need to get a less expensive school bag. This will help you stay within your budget and aid in teaching your children about prioritising finances.
Create a savings goal chart
Once you know what your child wants to save for, whether that is influenced by you the parent or not - figure out how many weeks it will take and make a chart. Create a weekly box where your child can put a progress sticker when they have set aside savings from their weekly allowance.
Lead by example
Create a culture of saving in your household, let your children see that you save money too and that this is ‘normal’. Make regular trips to deposit your savings together, supporting the process of saving larger amounts of money every month and depositing it in a rewarding savings account.
Encourage your children to save extra money by creating a “savings match”. By encouraging your child to set aside a certain amount of money to save per month, you can reward good financial choices by matching that amount. At Progressive we want to encourage a more savings focused culture in our society and the best place to start is with our children. We have a range of savings accounts available for children which prove popular with young savers across Northern Ireland.