With money being named the number one cause of stress in the UK, along with the mounting pressures of modern-day life, it is more important than ever to teach children about finance.
Understanding how finances work is an essential life skill that will help shape a child’s future and set them up for success.
Recent research from Aviva Insurance revealed that 43% of UK adults say they’re still paying for financial mistakes they made in the past, and a huge 63% wish they had started learning about finances when they were young.
So, it is absolutely vital to prepare the next generation for what might be an uncertain future.
There is also a growing concern for the future, with over a third (36%) of families worried about the impact of Brexit and government changes.
Why do we need to teach children financial skills?
Teaching children about money early-on will cultivate a positive attitude towards saving and a mindful approach when spending, which can manifest itself in all aspects of life.
Will Carmichael, CEO of a similar app, RoosterMoney, said: “Some 44% of what we do every day is put down to habit, so cement those habits early on and they will stay with your child for life.”
When should we start teaching children about money?
Both Hill and Carmichael highlighted the positive effects of getting children involved in finances as soon as they’re able to understand. For example, asking them to pick out best-value brands while food shopping – as a way of introducing the concept of “good value for money”. These small tasks are opportunities to have a positive conversation about money.
Ensuring your child has the best start in life is every parent’s priority, but it’s preparing them for those unexpected challenges that will drive success when it comes to their wellbeing and finances.
Carmichael said: “Life isn’t linear, there are lots of ups and downs, and it’s teaching your child how to deal with those challenges that will give them confidence with their cash.”
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