1. Understanding ValueStart with the basics: what money is and what it’s for. Explain how work translates into earnings and how those earnings are used for various needs and wants. This foundational knowledge sets the stage for more complex financial concepts.¹

2. The First Bank AccountOpening a savings account can be an exciting first step into the world of finance for a child. It’s a practical way to learn about saving, interest, and the value of money over time. Many UK banks offer children’s accounts with appealing features.²

3. Goal SettingEncourage your child to save for something they really want. This teaches them about goal setting, delayed gratification, and budgeting. It’s a powerful lesson in understanding the worth of money and the effort required to earn it.³

4. Budgeting BasicsIntroduce them to the concept of budgeting by categorising money into ‘earn’, ‘save’, ‘spend’, and ‘give’. This not only helps with money management but also instils a sense of generosity and community contribution.⁴

5. Fun with FinancesUse games and apps designed to teach financial concepts in a fun and interactive way. Games like Monopoly or online resources can turn complex financial ideas into engaging activities for children.⁵

Conclusion

By incorporating these methods into your regular discussions, you’re helping your children build a solid foundation for their financial future. Remember, the key is to keep the language simple, the atmosphere positive, and the lessons consistent.

For more detailed guidance and resources, organisations such as the Money Advice Service and educational charities offer a wealth of information tailored to young learners.^6,7

I hope this blog post meets your expectations and provides a friendly and accessible way to introduce financial concepts to children. If you need any further assistance or revisions, feel free to ask!

¹ Amy Roberts, Clare Casalis and Ben Slater, ‘Financial education – Free personal finance help for children and adults’,(moneysavingexpert, Finance help for children and adults, published 5 September 2023, updated 27 December 2023)

<https://www.moneysavingexpert.com/family/financial-education> accessed 16 April 2024.

² ‘Financial help if you have children’, (gov.uk, Financial help if you have children, published 11 August 2015, updated 16 April 2024)

<https://www.gov.uk/browse/childcare-parenting/financial-help-children> accessed 16 April 2024.

³ ‘Empower young people with financial skills’, (Lloyds, Free resources, organised by age,  published Unknown) <https://www.lloydsbankacademy.co.uk/financial-skills/> accessed 16 April 2024.

⁴ ‘Financial Literacy For Kids’, (HSBC, Building financial skills to make decisions about money, published Unknown)

<https://www.hsbc.co.uk/financial-education/developing-learning/> accessed 16 April 2024.

⁵ Anita Naik, ‘Financial Education: Financial literacy resources for children’, (Gohenry, Financial Education: Financial literacy resources for children, published 11 March 2024, updated 04 April 2024)

<https://www.gohenry.com/uk/blog/financial-education/financial-literacy-resources-for-children> accessed 16 April 2024.

⁶‘Empowering young people to take charge of their future by bringing money to life’, (Mybnk, Empowering young people to take charge of their future by bringing money to life, published 7 February 2017, updated 16 April 2024)

<https://www.mybnk.org/> accessed 16 April 2024.

⁷ ‘We believe everyone in the UK should have financial security so they can thrive’, (Turn2Us,  We believe everyone in the UK should have financial security so they can thrive, published Unknown)

<https://www.turn2us.org.uk/> accessed 16 April 2024.