Teaching pre-teen about money

[greyinganddecaying]

We're going to open a current account for my 11yo, ahead of him going to secondary school.

The plan is for us to put pocket money, birthday money etc into it. The aim is to teach him about managing money, saving etc.

I'd be interested to know how much pocket money other people give their children of a similar age and what they use it for?

Thanks

I give £5 per week to my similarly aged son. This isn't allowed to be spent on sweets, but it can be spent on anything else. He usually saves up and buys something to play with or sometimes books. He doesn't usually save for the sake of it, and any £ burns a hole in his pocket if he's actually in a shop 😄.

I do talk to him about money and saving etc., and I would like him to start saving properly.

Oh, he has other savings that he doesn't know about, and that he probably won't know about until he's 18.

Thanks! That's helpful to know.

We also have a child saver account, but not factoring that in for now as we have control until he's 18.

I've also given my son a couple of books about managing money - they look really good.

I’ve always given DS £25 a month; it transfers on pay day. But we do pay for a lot of other adhoc stuff for him. He has other money paid into this current account and saves most of it. He’s also got a savings account for when he’s 18, in August which he can use for Uni

I transfer £25 a month by direct debit. For this my ds has to complete two household chores a day, and tidy his room on a weekend.

He showed a keen interest in finance from a young age, so by the time he was 12 he pretty much grasped the difference between saving and investing, compound interest, pensions, impact of interest rates and charges, what a mortgage is. He was very keen to learn, especially about the difference between active and passive income. He spent a fair amount of time researching how self-made billionaires made their fortunes (and how some lost theirs). He researches all his own financial accounts - it was a good way to start.

Initially he saved everything he got, and also sold items on ebay to add to it. Then, he bought refurbished tech items he wanted from second hand stores. At 13 he found an online job during the summer holidays which dwarfed his pocket money. He used his earnings to set up and run a small business from home. I still transfer his pocket money, but he doesn't really need it now.

My 10 yr old GD has a GoHenry card so she doesn’t have to carry cash but when she goes out with me she can buy whatever she wants.

I should add that she is quite good at weighing up whether she really wants something or not and usually checks in with her mum if she thinks something is expensive. We went to the RA and she bought a print for £15. she told me it was good value because when they were away she bought a stuffed for £20.

Reading suggestions:
Martin Lewis Money Saving Expert www.moneysavingexpert.com/news/2018/11/financial-education-textbooks-funded-by-martin-land-in-english-s/ this is aimed at slightly older children but you could simplify it.

Money Help (used to be The Money Advice Service) has resources including age specific www.moneyhelper.org.uk/en/family-and-care/talk-money/how-to-talk-to-your-children-about-money-age-9-12

What the Accountant taught his daughter (again may be more suitable for older children). www.amazon.com/What-Accountant-Taught-his-Daughter-ebook/dp/B07ZVFBTHW/ref=cm_cr_arp_d_product_top?tag=mumsnetforu03-21&ie=UTF8

I don't give my nearly 11 year old DS pocket money, but what I do do is keep a spreadsheet that is his virtual 'bank account'. All money that he receives is logged on the spreadsheet and at the end of each month he earns interest at 10% (which I contribute). I do this to teach him the effect of compound interest. Previously he would find something/anything pretty much to spend his gift money on, and saw no benefit in not spending (saving) it. Since he's been earning interest on whatever sits in his 'account' at the end of each month, he makes much more considered purchases.

My 11 year old gets £11 per week- we pay his age a week! But he has to buy anything he wants from that. He's terrible though at saving, often spends then regrets it when he wants something else, is forever asking me for more money and would blow the lot on V-bucks if I let him (which I don't).

Need to work on this really.