When Is Financial Education for children too early?

[Namrah88]

Hi All,

Just curious to see other views on a semisensitive subject of life but one that cannot be ignored.

When should we be teaching our children about finance and having a relationship with money, & how should we be teaching them?

Also, is it a responsibility of the system, the parents, or both?

Would love to see what you think

I do not want to assume, but it seems the majority of people who have answered are in employment; please correct me if I am wrong.

I am curious to see how parents who are on benefits teach the children about money, as I myself was on free school dinners as my mother struggled to gain employment, then I gained EMA (at college, for full attendance, etc.), but I do not think that exists any more.

But yeah, it would be interesting to see what the thoughts or way of teaching about finances, etc. from benefit seekers are.

@Namrah88 i think it would be heavily dependent on the reason for being on benefits and many people on benefits are in employment. The crux of money is the same you have money that comes in and money that goes out and probably if you are on benefits there could be a mismatch.

Not quite the situation you are asking for experience from but my mum was on the breadline when my sister was born, my sister was on free school meals too. She was in a better situation by the time I came along but that time shaped the way she taught us about money. I knew from an early age that the most important bill is your rent or mortgage because you need to keep a roof over your head. If you can afford to buy a couple of extra food items this week that will help you through a difficult week later do that. Growing up there was always an emergency supply of food in the bottom of the wardrobe bought on months where there was more money to get them through one when there wasn't. My parents were reliant on my dad's overtime for the niceties in life but it was some times unpredictable. This got them through weeks when there was no overtime. If you can afford to help someone out do so as when you are down on your luck you are reliant on the kindness of strangers who may well become firm friends. My mum is still friends with a family that helped her out when she couldn't afford childcare to go to work, food to eat or heat her home over 40 years later and her friend is now approaching 100!

I always make sure that I have savings in case my circumstances change and I can't work to get me through rough patches. I always have a cupboard of back up food just in case, which came in useful in the early days of the pandemic when I was vulnerable and shielding not wanting to go to the shop and not always able to get a delivery. The first thing that leaves my pay is my mortgage (previously rent). We were kept entertained with cheap activities, I know that money doesn't buy smiles, time buys smiles. As I got into my teens my parents situation improved. The biggest difference was my dads shift from a get paid for the hours worked role to a salaried role. Knowing exactly what was going to be earned each month made budgeting easier. I think often it's easier to teach about money and finance when there is limited funds. Money is always part of the conversation because it always there in the background. When you are comfortable money doesn't come into focus as much and you have to make more of a conscious effort to bring it up. My mum would know exactly what she had spent each week. How much cash was still in her purse. How much was in the bonus envelope from weeks where she had money left over from the "housekeeping" a phrase a heard a lot as a child but never ever comes into my vocab now. Direct debits have changed a lot bills just take care of themselves for many. I couldn't tell you how much money I have left at the end of each month. Periodically I check statements making sure enough is in the household account but not too much as it would be better off in a savings account but money is not something I think about day to day, weeks to week or even month to month. Teaching my daughter about money is a conscious decision. Managing expectations that she can't have everything we introduce boundaries out of choice. My parents introduced boundaries out of necessity.

Thank you for sharing your experience; much appreciated.

I feel these days its more crucial to start earlier as the ways kids can start to earn are less now than they used to be, i.e., paper rounds, retail, etc., unless I am wrong.

Also, there seems to be less incentive for them to want to work/develop careers. Interesting times, for sure.

@Namrah88 I went to the same school as my dad and there obviously quite a few people in my school who's parents were are school at the same time as my dad. There were families that prioritised working hard and the benefits that can give and there were families that were disinterested. I think that's always been the case. It was in an underprivileged area and in my dad's era a lot of the hard working went into trades. In my era they were pushed into more mainstream a levels and uni pathways which probably wasn't right for some and the jobs at the end of it weren't as promised. It caused a lot of them to be disillusioned. I was at school in Blair era and the 50% going to uni target.

I think the number of non uni avenues into careers is a real problem. I'm in science and so many of the people I speak to in their late 60s-70s went into science and then went to uni funded by the company and at some point went on to do PhDs funded by the company. Now you need high A level grades, 1st class undergraduate degrees, a masters degree and a PhD to get through the door at a company. To get in the masters you some how need to find a way to get a research lab or company to get on the masters degree. It's a completely different scenario. Even in the years since I graduated it's gotten so much worse. An integrated masters (done as part of your undergraduate degree) was enough to get a funded PhD but now you need a research masters on top of that with prohibitive costs and with less funding available compared to PhDs.

But yeah, it would be interesting to see what the thoughts or way of teaching about finances, etc. from benefit seekers are.

OP - watch “Rich House, Poor House” or “Rich Holiday, Poor Holiday” on Channel 5 on Sunday nights. The “poor” people seem generally to be aware of every penny, as are their children. Contrast that to “Eat Well For Less”, where people seem oblivious of how much money they waste on food.

I am curious to see how parents who are on benefits teach the children about money

I think that whatever your income, and wherever it is from, the same principles apply. Or at least possibly until you get into the realms of wealth where there is no budget.

If you are talking about financial education from young, that is where pocket money comes in, even if it is £1 a week. Working with children to understand the "when it's gone, it's gone" idea, and the concept of saving up for something, etc. Also that rather than buying a 'new' book at the school book fair, you could take the same £10 and buy 10 books at the charity shop, or put the note in your pocket and get them free from the library. All things you model for them, explain to them, and let them experience.

I realise this gets more difficult as cash gets used in fewer places. When my dc were at (secondary) school, they had their dinner money for the week, and had to manage it. If they bought fizzy drinks or extra cookies at break, they would not be able to afford a proper dinner towards the end of the week. If they took cereal bars or fruit from home, they saved more. If they chose a jacket potato and beans over the roast one day, they saved. By the time my youngest went to 6th form, it was cashless, and they didn't have that concept of 'cash in the pocket'. Lots of things can be taught 'in theory', but actually experiencing things sticks a lot better for most people.

Same with encouraging them to get part time jobs. It isn't just that they are earning money in their teens (which is good) it is that they "feel" how many hours of flipping burgers you need to do to buy that particular brand of trainers, or that concert ticket, or whatever expensive thing they are in to. Then understanding that the more 'attractive' job on paper, that involves you having to get the train to the City Centre, actually means you have less time and less money in your pocket than the less appealing job on your doorstep.

Thank you all for sharing your thoughts!

I myself am in my mid-30s, and its interesting to see extended family members "teach" the kids about money or don't! As they are comfortable, the kids (boys) do not have to worry about finances or even hesitate to ask for what they want, and then when it comes to working, they work, but as they still stay at home, they do not contribute until they maybe move out of the house and see the world for itself. In a way, this does a disservice to the parents but also the children.

Yes, if you are financially comfortable or even wealthy, do not become complacent with the future generations just because they will be next in line to carry the wealth forward.