National Numeracy Day: 5 tips for teaching children about money

Helping young people learn about how money works and how to make it work for them can help transform their financial futures.

This week marks National Numeracy Day – an annual awareness campaign that’s all about helping people to be ‘number confident’. It’s designed for all ages, but in this article, we’re focusing on the next generation. Equipping them with the knowledge and skills to manage their day-to-day finances is fundamental to their long-term financial well-being.

Financial education in schools can be inconsistent, so the onus is very much on families to do the teaching. And, amid the backdrop of the cost-of-living crisis, it’s a good opportunity to start the discussion and lay the groundwork for the future.

Here are our five top tips for teaching children about money.

  1. Start early

Investing little and often from a young age can make a significant difference in a young person’s future, giving them a head-start towards financial security. Like the proverbial early bird, the earlier you invest, the more time your money has the potential to grow – helping to set your children up for a life of financial well-being.

  1. Make it fun

It’s undeniably a trying time for parents, as the UK faces rocketing inflation and food costs. However, there are a variety of quick and easy ways to begin teaching children about money. Little ones can learn about budgeting by helping with the weekly shop or planning an outing, and about the benefits of saving with their own cash account.

  1. Set a good example

As a parent or grandparent, you’ll be your youngster’s biggest champion, so it’s important to remember that you are the biggest influence on their money habits. How we manage our own finances and how we talk to our children about money can benefit them far more than any one-off educational activity.

  1. All things being equal

There’s no avoiding it – the girls in your family will face financial challenges boys won’t. It’s therefore important to not only make our daughters and granddaughters aware of the challenges they may face, but also give them the tools to beat them. Make sure you’re teaching girls the same things as boys. Budgeting and building wealth are equally vital skills and should be taught to both boys and girls.

  1. Set a goal

Educating tomorrow’s generation about the benefits of budgeting, saving, investing and giving back are crucial life skills, but having a set goal always adds a tangible purpose. Whether it’s buying a first home, paying for further education or travelling the world, putting funds away early in life can make it achievable.

To summarise, teaching your children about money can help them make a positive start to their savings journey. By financially empowering them from an early age, you can help them feel like they’re in control of their finances and give them the confidence to ask for that promotion or pay rise at work!

Not sure how to approach the subject? Talk to Wellesley to find out how we can help.

The value of an investment with St. James’s Place will be directly linked to the performance of the funds selected and the value may fall as well as rise. You may get back less than the amount invested.

SJP Approved 10/05/2023