Teaching your child about money

A recent survey by Halifax found that 78% of 8-15 year olds receive pocket money with the average amount totalling around £6.20 a week

Depressingly, there’s even a gender gap amongst children as boys receive on average £6.25 a week compared to girls’ £6.14

According to Experian, 37% of British parents remain concerned about their child’s ability to manage their money when they become financially independent

According to a recent report, behaviours and attitudes towards money can be set from as early as seven


 

Need to know

  • Money management is an important lesson at any age but starting early can help prepare children for later life
  • It doesn’t have to be a boring lecture about the importance of saving, in fact making the learning process fun will of course make it more likely for your child to take part
  • According to Experian, over 60% of parents felt that their child could receive more support about how to manage money well in the classroom
  • Having your child associate money with work will help prepare them for the adult world and hopefully encourage them to develop a healthy work ethic.  As Sarah Willingham herself says, "They should 'learn to earn'"
  • There are now great money management apps and websites for children which allow them, to a certain degree, to take charge of their money and start their financial education earlier
  • These apps let your child set saving goals and let you list tasks for them to earn their money, as well as limiting where their money is being spent
  • Some also offer exclusive discounts for places your children will want to spend their money which is a great incentive for your child to save
 

Getting started

 

Jangle


Why we like it:

  • FREE app from Experian
  • quality marked by pfeg (part of Young Enterprise).
  • for children aged 7 -11
  • fun and easy way to help teach children essential skills about how to manage money
  • allows children to earn pocket money
  • helps children save for the things they want
  • very interactive for parent and child
  • non commercial

Watch out:

  • currently only available on iPad
  • parents need to approve activity at every step which can be time consuming

Qwiddle


Why we like it:

  • FREE to set up and use
  • Free to transfer money to the child's Qwiddle PayPal account (by debit card or by adult PayPal account with linked bank account/balance)
  • Allows your child to set savings goals
  • Child can share these goals with the wider family & friends at birthdays or special occasions by Qwiddle email
  • Has exclusive offers and deals when savings goals are reached
  • Money can be spent online where PayPal is accepted or
  • Transferred back into the Parent PayPal account to be withdrawn and given to the child as cash
  • Parents can create tasks that kids can complete to earn a bit more
  • Dashboards for parent and child
  • Can be used on multiple devices
  • Powered by PayPal so no need for a debit card

Watch out:

  • 3.4% + 20p charge for transfers with a credit card payments
  • Need a PayPal account
  • Recommended for children 15 and under, but open to all ages

goHenry


Why we like it:

  • 3 month free trial
  • transfer money from your account to child's account
  • Parents can set spending limits and designate where it can be spent
  • kids given pre-paid visa card which encourages responsibility
  • Parents can set tasks to earn extra money
  • manage accounts via app and online
  • money kept in Natwest so covered by FCA
  • free to cancel at anytime
  • Blocking system means no expensive mistake purchases

Watch out:

  • costs £2.49 per child per month
  • costs 50p to pay into account from debit card
  • costs £2 to use goHenry card abroad
  • £5 to replace lost card
  • for kids aged 8+

Roosterbank


Why we like it:

  • Acts like a savings tool
  • Doesn't require you to deposit money
  • Children can see how much they have left on their own dashboard
  • Kids can set savings targets
  • Kids are encouraged to save with 'Roostie Interest' which can be exchanged for prizes
  • They send you what they want to buy when they have saved enough

Watch out:

  • Needs updating every time your child spends money

Sesame Street


Why we like it:

  • Great for younger kids
  • Engaging episodes that explain what saving is
  • Loads of resources
  • Fun for adults too!

Watch out:

  • American show so uses 'dollars' for their examples

The inside track

  • For teenagers, explaining to them the benefits of more complex financial products such as ISAs will help them develop an understanding of interest rates
  • If your teenager has a job you could agree to contribute a certain amount for every pound they save which acts as an incentive and teaches them about interest
  • If they don’t have a job, do the same with pocket money they’ve earned
  • Pocket money is beneficial to your child whether they’ve earned it or not as research suggests that 55% of people who did receive pocket money as a child were able to add to their savings and are better able to save for retirement

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