It is a learning curve, but this Father’s Day, be the best Dad you can be and teach your children to be money savvy.
1. Model good money management
Children learn best from what they consistently see. One of the best things Fathers can teach their children, is the value of money and how to live within their means. It is all about teaching them to make good choices from an early age. Teaching them the importance of sticking to a shopping list and being single-minded and remaining within a budget is key to financial success.
2. Teach your children the difference between “wants” and “needs”
The chocolate bars at the check-out are every Mum and Dad’s nightmare, kudos to all children for their persistence. However, see it as an opportunity, rather than an inconvenience. Perhaps, ask a few questions like, “do they need it and why?”, “did they bring their pocket money and do they have it with them?” ….etc. Most of the time, children will have forgotten their pocket money and that’s the end of that, they have to wait until the next time you take a trip to the supermarket. It is a good way to teach them some restraint and the difference between wants and needs. The bar may only be £0.60 which may not seem like a lot of money, but when your pocket money is only perhaps £2 or £5 a week, it can be significant. In the future, when they have salaries that are in the thousands, this could equate to a £600 or £1000 spend. Perspective is everything!
Giving your children pocket money or an allowance teaches independence and the value of money. We recently heard that some parents try to encourage their children to set aside from their pocket money, 10% for a charity, 30% to savings, and the remaining 60% they can spend or perhaps save a little more for something big that they really want. This not only teaches them to manage their money but teaches them to be generous too. Something we are keen to implement in our own households.
4. Look for deals
Let’s be honest, it is mostly Mums that come across as the natural deal hunters, but Dads can play their part too. Consistently teaching children to do the same lays a good foundation for the later years. Here is a little example of how you can teach a 7 to 10 year-old about bundle deals. In the big supermarket, a 41g Crunchie bar is usually £0.60. However, sometimes you can get 4 of the same chocolate bar for just £1.00. This means as opposed to one, your child can buy four bars and eat them over the month (not all in one go, obviously) making a saving of £1.40. This might not seem a lot to save, but in the future, if your child were to apply the same principle, they could turn out to be incredibly money savvy, which is the ultimate goal.
At QuidCycle, we are passionate about preparing and training our current and future generations to achieve financial success and this starts by being money smart. To find out more, visit www.quidcycle.com.
Image courtesy of bplant from freedigitalphotos.net