Talking to kids about money can be challenging - especially if your kids are below the age of 7.
In fact, you may think there’s not much point in talking to children about money at such a young age. According to a 2017 T.Rowe Price survey, 69% of parents have some reluctance when it comes to talking about money with their children.
However, studies show that by age 3, your kids can actually grasp basic money concepts. By age 7, many of their money habits are already set!
Your kids will inevitably learn about money from someone, so why not take the opportunity to be a positive influence in their lives and teach them healthy money habits whilst they’re young?
In the first part of this 4-part series on Kids & Money, we’ll be sharing four age-appropriate money concepts to start the conversation with your children on finances - starting with our youngest age group, 5-7.
Here are 4 money topics to help jump-start this conversation.
1) Counting, Adding & Subtracting
This one may seem pretty obvious, but that doesn’t make it any less important! Although your child will more than likely be learning these basic maths skills at school, it will help for them to have real-life experience with this at home, too.
At age 7, kids will begin to understand not just quantities of money, but their value too. Using coins, help them count, add, and subtract: you could also try turning this into a game to better hold their attention!
Check out the Top Marks website for some great money games tailored to your children’s age.
2) Paying for Small Purchases
According to the Office for National Statistics, children aged between 7 and 15 spent on average £12.40 a week.
Although this decreases to just under £10 at the age of 7, it’s still important to teach our children the value of their purchases - however small they may be.
Engage your children with money by having them pay for small purchases. For example, a bag of sweets or a pencil case for school. If they currently have an allowance of pocket money, this will help them understand that their spending adds up over time - even on small purchases!
3) Earning Money for Chores
Encouraging your children to learn the value of hard work in exchange for money will not only help prepare them for the adult world but also teach them that time=money.
Allow them to help out with small chores around the house for which they can earn coins, and have them add to a piggy bank after (or deposit to their digital wallet with ImageNPay*).
Whether it’s picking up their rubbish around the house or tidying their toys, the coins will provide a good incentive for them to help out more whilst providing a good introduction into the world of money.
4) Saving Up for Gifts
Last but not least, use special occasions wherever possible as an opportunity to teach your kids about money. Maybe they have a sibling or auntie whose birthday is coming up, or they’re going to a party for someone in their school and are looking to buy a present.
Help teach your children the value of saving by having them save up their pocket money to purchase a small gift, or even to just put towards a gift.
If you have them put aside a specific amount of money each week, this will also help introduce them to the concept - and value - of having sinking funds.
And there's no need to throw in the towel if your child is over the age of 7 and hasn't yet learned about money: in the next part of our series, we’ll be sharing age-appropriate money conversations you can have with children aged between 8 and 12.
If you’re a parent looking to teach your kids the value of money and help them develop healthy money habits, the ImageNPay Digital Prepaid Card app could help.
With our new “ImageNPlay” features, you can add up to 3 separate cards for your kids which you can use to transfer money, monitor their spending, and make money a fun-learning experience with colourful card designs and moving images!
To find out more and download FREE for iOS or Android, just tap the button below.
You can also visit our FAQs page for all you need to know about how our app works and the benefits for kids and parents.