Adult spending habits are formed at the age of just seven. So in a world of invisible money where purchases are made by card or online, how can we teach our children the real value of cash, budgeting and saving to avoid the next generation getting into debt?
Children are taught the theory of money at school but it is up to us as parents and grandparents to put this into practice. We can work with our children to give them independence and confidence with money to prepare them for later life.
We start with 'Wants and Needs'. That same old debate which is key when teaching the value of goods. Establishing the difference at an early age makes for sensible spending and a good foundation for all financial decisions.
Shopping lists - ask your child to help you compile the shopping list for your food shop. Again working out what you 'need' will help them prioritise spending. When shopping you could discuss the prices of products with them and explain how you could get the same product cheaper elsewhere.
