Saving, making, and knowing how to handle money is a habit that parents can teach their children at a young age - and doing so can help equip them with the skills that will give them the best headstart in life.
To celebrate the latest and most exciting features of ImageNPlay (including registration for everyone aged 8-18 years old) we've put together a blog post on how to teach your children healthy financial habits.
Keep reading for our top tips to help prepare your kids for a successful financial future!
1) Establish Wants vs. Needs
Discuss the differences between wants vs. needs, using your own budget as an example. This is an important first step in not only teaching kids the value of saving but allowing them to think about how exactly they want to prioritise their spending.
Explain that 'Needs' includes basics like food, a roof over their head, basic clothing and school uniform, etc. Anything else would fall into the 'Wants' category - think extras like cinema tickets, sweets and treats, or the latest games console/smartphone.
2) Allow them to Earn their Own Money
As well as learning the value of hard work, allowing your kids to earn and save money gives them the opportunity to learn how to use it responsibly.
According to Investopedia, two-thirds of parents said they paid their children an allowance in 2019, with kids earning an average of £22.50 per week for various household chores. Not only will doing this help get stuff done around the house, but you'll also be teaching them that time equals money!
3) Explain the Importance of Keeping Money Safe
With online spending becoming more and more popular, it's important that your children learn how to shop safely online.
Emphasise the importance of keeping their details (and money) safe: you could do this by providing them with a personal stash e.g. an allowance on a digital prepaid card or a good old-fashioned piggy bank.
If your kids prefer to shop online - whether it's for clothes or tokens for their favourite Steam game - you can add up to 3 separate prepaid cards within your ImageNPlay account and view all transactions with the tap of a button for extra peace of mind.
Psst! Did you know our virtual prepaid cards make it safer to shop online as your bank's details (including account number and sort code) are protected? Find out more here on how we keep your money safe.
4) Set Spending Limits
With ImageNPlay, you can set spending limits on your children's virtual prepaid cards and top-up their cards with the amount you choose!
Take them shopping for a day - maybe for school supplies or one day's lunchbox - and help them work out how much they can spend whilst sticking within their limit on their digital card.
5) Talk About Money
If you want your kids to learn financial education, it must be an ongoing discussion! Schedule regular check-ins to talk about anything money-related.
You could also make this a fun activity: e.g. MoneyHelper suggests turning household jobs into a game by giving your kids ‘tokens’ they can exchange for rewards (such as extra pocket money or a favourite treat).
Use these games as an opportunity for discussion, particularly if your kids are trying to save up for the latest gadget or toy.
6) Bonus Tip: Give them Autonomy
Depending on the age of your child, the approach you decide to take regarding teaching about money could vary greatly. For example, between the ages of 9 and 12, chances are your child is wanting independence - and you can focus on having them take responsibility for their own spending choices.
On the other hand, once your child is a teen they'll likely have more costly aspirations! You can focus on setting the right example by giving them financial responsibility - whether that be through encouraging them to save for driving lessons or managing their first wage at a part-time job.
Luckily, with ImageNPlay now available for everyone aged 8-18 years old, you can enjoy peace of mind over your children's spending whilst giving them a little extra financial independence with their own virtual prepaid card.
ImageNPay will soon be available on Android - watch this space and follow us on Instagram for updates!