Mumsnet users share how they teach their children about saving money

[EllieMumsnet]

This activity is now closed

We recently ran a survey with Mumsnetters and 45% of you said you think it’s important to speak to children about saving and investing before they reach the age of 10. So Legal & General would like to know how you teach your children how to save, invest and do more with their money.

Here’s what Legal & General has to say: “While many of us believe that encouraging children to think about the power of their pocket money is important, sometimes just knowing where to start with this tricky topic can be the biggest obstacle we need to overcome. We’ve made it easy to begin your savings journey and invest for your child – you can save for their future with £20 a month or a £100 lump sum (click here to find out more). We also recently launched our Investment Academy, which includes a wealth of resources and quick guides to help you develop your understanding, so that you can help your child with theirs.”

So how do you teach your children about saving? Do you give your DC pocket money for doing tasks? Do they have a money box or their own savings account? Perhaps they have to buy some games or toys they want themselves so they understand that you have to save up to be able to afford them?

However you teach your children about saving, please share it below and you will be entered into a prize draw to win a £300 voucher of your choice (from a list).

Thanks and good luck with the prize draw
MNHQ

Terms and conditions apply

Open 04/03/19 to 18/03/19. To enter please post on the thread below. One entry per person. One prize to be won: £300 voucher of winner’s choice chosen by random draw performed by computer process.

The value of your investments can fall as well as rise and any income from them is not guaranteed. Legal & General (Unit Trust Managers) Limited.

[BristolMum96]

I wouldn't teach my child to save, it's not something they need to know until adulthood. Childhood is about fun and spending pocket money. It's my job to save for my child future and she won't need to know about it until the applicable time.

[Ashhead24]

DC are still very young but we've started explaining that they can't have things they want in shops because they're too expensive, just to begin to give value to money. Will do saving towards things when they're bigger, but at the moment the thing they want the most is chocolate!

[Asuwere]

When my DC want to buy something but don't have enough money at the time, I give them the option of buying something else or they have to wait until they have more money and save up for it.
I remember DS1 making himself a chart so he could mark every penny he got till he could afford an octopod and he loved it a lot as he knew how much it was worth!

[lillypopdaisyduke]

I have spoken to my DS about how if you want something, you need to save for things, so when ever they want anything which is above and beyond the £5 spending money (new games and headphones etc) they have a junior bank account, and I have a regular bank transfer of £5.00 per week being paid in. They watch the £££££'s mount up and at the end of the month can make their purchase. And quite often look after it more as they have paid for it 'with their own money'

[Sunseed]

I've involved each of my DC's with choosing the investments in their Child Trust Fund account and basic principles of investing. One of them chose Unilever shares, because they make Magnums and Marmite and we buy rather a lot of both....

[Sierra259]

DC are still quite young, but we have discussed that they will need to save up their pocket money if they want to buy more expensive items, and let them choose whether they save or blow it on sweets/cheaper things.

[maclinks]

I started with chick peas, when the children did something good they got a chick peas if they laid the table, got into there pj's when to bed without an argument. etc etc...they put the peas in a jar and when it was full it converted in to a prize they had pre chosen. This when they got older changed form peas to weekly pocket money for set tasks, with bonus's for other tasks...like raking the leaves up, washing the car. they easily leant how to save up for something they wanted

[RippleEffects]

I'm very much of the one sweet now or two sweets later attitude.

I encourage the children to save their pocket money rather than just fritter it by matching it for larger items that take 4 plus weeks to save for. For example DS2 wanted a keyboard at around £45 so we did a deal roughly 5 weeks pocket money - as he's getting quite good at saving some he only needed two weeks (£5/ week). Very inflated interest rate but they've really grasped the concept and don't run their accounts near zero. They like being cash positive as they now appreciate it gives them options when they do see stuff they want.

For my two secondary age children their pocket money is direct debited to their accounts for which they have cash cards. They can order things from my eBay/ Amazon account using their payment card (and running it by me). They can really track their own spending and decide if £x on sweets was really worth it when now they want a new game or activity. I gently guide but try hard to let them make their own mistakes with being a little impulsive and then having regret. Better to learn this with £5 eBay magic tricks than more expensive things like cars when older.

[Elllicam]

My children are still quite small (all 6 and under) but we do try to encourage saving pocket money. They tend to spend it as soon as they possibly can though. My oldest does a savings bank through school:

[RomaineCalm]

We opened a Building Society account for DC when they were 7. Since then we've always tried to ensure that a chunk of Christmas/Birthday money is saved while still leaving a reasonable amount for them to spend as they wish.

I think it's important that they do have some money for spending even if it's on things that we'd consider to be a waste of money. It's also important to get into a habit of saving for bigger purchases. Funnily enough things become less attractive when it's their own money they're spending rather than ours!

[DitaFajitaJones]

My daughter is 7 and we have introduced chores, so she experiences having to work for her money. She is then (the majority of the time) happier to save her money for big things than spend it away on little bits and bobs

[Whereareyouspot]

Mine are enjoy raged to spend and save whenever they get cash for bdays or Xmas- so if they get £10 they decide how much to spend now and what to put into their savings accounts.

Sometimes they want to spend it all, sometimes they save it all.

The offer is that we wi match what they save (given interest right now is non existent it gives them the concept of savings gaining additional money)

Every month or so we log on and they see how much is in their savings.

The oldest one had used some of his savings towards a big value item he wanted a while back but largely they haven’t dipped into the savings.

Occasionally they put some of their pocket money into savings too.

We also ask them to make a small charity donation every month that goes from their savings accounts (it’s £1 a month and more than covered by the fact we match what they save) and they can choose and change these charities as they wish.

[Skyejuly]

Here we do money for chores/odd jobs
They have a choice what to do with it but we encourage them to save 10%.

[TheGirlWithGlassFeet]

DCs are very young at the moment but we are keen to teach them good money management. Given their ages it's just saying things like "that costs lots of money and we don't have enough yet". As they get older we will open saving accounts for them.

[username121314]

Saving pocket money

[alwayslearning789]

First introduction to the concept of money and saving when DC young was the traditional piggy bank - spare change, extra pennies dropped in as an active action, from toddlerhood to early primary.

Moved on to chores allowance from late primary to early secondary age, hugely facilitated by the introduction of apps like Go Henry which allowed DC to actively tick off specific chores on completion, and see the direct impact on their pocket money allowance, allowing them to 'plan ahead' if they wanted something extra.

Mid-Secondary to College moved to actual bank card specially for 11 to 17 year olds, to allow familiarisation with banking concepts such as interest, spend limits, cash withdrawal limits, active saving etc:

Monthly allowance no longer linked to specific chores, and now a regular set amount based on teens age to facilitate own personal budgeting, independence and space to safely learn from any mistakes.

[ItsHardToExplain]

I ask them (they dont have to) if they want to put some money into their savings when they have birthday or Christmas money, they usually do unless they are buying something ‘big’.
If we are out shopping then I encourage them to look for offers and reduced food - I would say for example this cereal is £1 cheaper if we save £1 on 5 items that’s enough for a cinema ticket so we get to do something fun with that £5

[Lovetocycle]

Mine is 2. He loves to put coins in his money box. So every so often we let him empty it out and we will walk to the shop to buy him a treat. Obviously I pay and then give him the pennies back for his money box, but I think it's teaching him an important principle.

[voyager50]

He's had a money box for his pocket money since he was little and whenever he wants a magazine or treat he takes it from there. He know if he wants something more expensive he has to save and can earn extra by doing more chores.

[JC4PMPLZ]

Ds has a Young Saver's account and he watches me penny pinch in charity shops. He has certainly got the message!

[MakeTeaNotWar]

DC are 6 and 8. They don't get pocked money and judging from their demands when we are in the shops, have a cavalier attitude to money. However they do appreciate that money is why Mum and Dad get up early and go to work - to earn to pay for stuff. The other message around money that we've always reinforced is "when it's gone, it's gone". They both have piggy banks that they add to when given cash and they like to see it all add up

[jacqui5366]

We save £1 coins in a personalised tube, the coins are earned for helping around the home, and when the tube is full we will have a treat (cinema, game, or add to the bank account). They love earning and seeing how the money adds up and take great pride in their purchases.

[Montydoo]

I have encouraged my children to save their money rather than just spend it on 'throwaway toys' I opened a bank account when they were born, and they have saved some of their birthday and Christmas money throughout the years and have several hundred pounds. I will certainly try to ensure that they put this in to a help-to-buy ISA, so when the time comes they will have a head start when they need to get onto the property ladder.

[IToldYouIWasFreaky]

I don't really like to link pocket money to chores. I expect DS to do a certain amount around the house as that's his responsibility as a member of the household. He gets a set amount of pocket money each week, and he does have the option to do extra tasks if he wants to earn more.

He's had pocket money from quite an early age (around 5 I think) as I found it really helped with the nagging when we were shopping! If he asked for a treat/toy etc, I told him he was welcome to buy it with his own money. This had quite an impact on him deciding whether he actually wanted it or not! He's always been good at saving for big things that he really wants.

He's 11 now so eligible for a child's bank account with debit card. I'll be paying his pocket money directly into the account and he can keep track of how much he has to spend via internet banking etc.

[Ragwort]

We have always encouraged our DS to save, he has always enjoyed going to the building society to deposit birthday or Christmas cheques. He got his first p/t job at 13 (paper round) & has worked at various different p/t jobs, around school, ever since. From 14 he’s had a small (by Mumsnet standards ) monthly allowance & buys all his own clothes, trainers etc. He now has 3 separate bank accounts, manages them on line & has saved up quite a lot. He understands he has to provide his own spending money for school trips etc & paid entirely for his post A level holiday to Greece with a bunch of mates.
DH & I are very conscious about saving & financial security (mortgage paid off years ago) so I think some of our approach may have rubbed off on him.