Tuesday, 27 January 2015

Teaching Chester the importance of budgeting.

I think it's very important to teach children about budgeting and the value of money. I often think, had I been better educated in the subject I wouldn't of made so many money mistakes when I left home.

I have learnt the hard way and we are still paying off unnecessary debts, most of them from before the Children were even born! But one good thing has come out of all of this. I am now very good at budgeting, very aware of where our money is going, and very good at spotting a bargain. In fact, several times in the last year friends have messaged me to ask advice on money saving, mostly on holidays to Florida, but also for general everyday things too. I take this as a compliment and am happy to give my opinion and advice. 

So you see, for this very reason, I want my children to have a real understanding of Money. I feel at age 3, Millie is probably a little too young to really understand. So for now my concentration is on Chester, at age 6 he has a keen interest in money, you may remember last year when we made a Skylanders money box so that he could save for some new figures, ever since then he has been obsessed with counting money.

I was recently asked if I would like to take part in a childrens savings challenge by Family Investments. I decided to say yes as after researching, they seemed to have set up a fun way to get children interested in talking about money. They even have a fun, easy to use Pocket Money Calculator on their website. 

Chester was sent an easy to use child savings planner, along with some pens to write on it and a piggy bank that helps him count up his savings.

We discussed what Chester is saving for, apparently he is saving for gems and dollars for the games on his tablet! The savings planner has got allocation for 5 weeks so after a big discussion we decided it would be a good idea to aim for savings of £10. He worked out that he needs to save £2 a week. Given that we do not give our children pocket money at the moment (as they get treated to lots of things throughout each month) this could prove to be quite a challenge for Chester. I have explained that he can earn money by helping with jobs around the house, or perhaps rather than asking for sweets, to ask for the equivalent in cash instead.

We have just finished week 1 and he managed to save £2.41! Around 91p was found around the house and the rest was earnt. He has set the table for dinner all week without a fuss, he has helped me with with the dishwasher and even helped me comfort Millie when she got upset. He was very happy when he realised he was above budget in week 1, I think this have given him lots of motivation for week two!

Do you think its important to teach your children the value of money?

I will be keeping you updated on Chester's saving progress so keep a look out on my blog!

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