I often hear people say "I wish I was younger but knew what I know now!"  well... our children are way younger than we are, we've got the opportunity to 'be' younger as to speak, through them. One never knows everything about every topic on earth, sure, however, some things are worth learning so we pass it on. Money is quite a delicate subject, it's also an extremely important one. It influences the quality of life not only of our little ones but of future generations as well.

The best way to learn is to practice, so, start by giving them an allowance, however small.
How much you give your child and how often is entirely up to you and your partner. If you're not sure how much to give them, I found researching for this article, that as a guideline some parents give a £1 or £0.50 per year of their age per week. Usually on a Friday. When I started with my children I gave them less than that, but then, if they wanted something from the shop and they've been ''good'' at school and helpful around the home I would buy it. And I would say why they deserved it. With other things, they had to save patiently every week. At the beginning, they would have the money in their purse and change their mind if they saw something (usually slime) they wanted at the shops, I didn't stop them from making that mistake, but I would say something like ''It's your money to spend as you like, but remember if you buy that slime now, which will be dry in a week, you'll have to start saving again for that VR box''  or whatever they wanted to save for. That made them think twice before making impulse purchases. It's all a learning curve, so try what you feel works best for your family.


Here are my suggestions for teaching children the value of money in order to prepare them for financial success:

• 1 Consistency is key.

Whatever you decide to do, and if you think is working, be consistent with it. And that means you and your partner must agree to it and be on the same page. Meaning if your child runs out of money for the week but she/he sees a juicy pot of unicorn poo in the shop and desperately wants it and you refuse to buy it with your money, making her/him wait until next allowance, but then she/he goes and asks daddy and he says yes... you know where I'm going... That just teaches them the opposite of what you want them to learn, which is discipline, patience, sensibility, and joy! why not? Money can provide us with a lot of joy and a sense of accomplishment when it's earned fairly.

• 2 Make it playful.

Actively teach your dc (dear child) about the value of money. Explain how money is a tool that allows us to pay for things and services. Especially when they are quite young, children can get bored easily. So make it fun by ''playing'' around with money (use a fake one if you want) playing shops and using shopping trips to show them that everything we put in the trolley has a price and it all adds up and we mustn't leave the shop without paying for it.

• 3 Allocate the money.

When you start giving your children an allowance speak about how some of the money goes into savings, some goes to charity ( get them separate piggy banks) and some are for them to spend as they like. The quantities are entirely up to you and your partner.

• 4 Let them make mistakes.

In the beginning, most children will spend all their money straight away, because it's a novelty, and they feel this sudden sense of power. So, I know it's counter-intuitive but sometimes you need to let go of control and let them learn by experience. This has happened to me and my girls in the past, whereby they impulsively wanted to buy a stash of slime, I reminded them that next week we were going to London to this really cool shop that they were saving for, but they go ahead and buy the slime instead. The following week, when we do go to the cool shop they ran out of money and their slime is all dry, with hairs and lost all the glitter. Ok, be brave and don't offer them more money, however tempted you are, or, if you do, explain that next time you won't and that this money is going to come out of their next allowance. In the long haul, giving in is more damaging than resisting the urge and they must know that it requires discipline and making the right choices. It teaches them to think before buying.
With time You'll find they'll ponder before purchasing anything. Don't you wish someone taught you that?

• 5 Compensate them for extra work.

Do not give them money for things they are supposed to do anyway, like making their bed, tidying up after themselves, helping empty the dishwasher, doing homework etc. those things are non-negotiable and are part of family life. Instead do offer to pay for extra work, for example washing the patio floor or clear the garden of dead leaves.