Mumsnet users share how they teach their children about saving money

[EllieMumsnet]

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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.

My kids get £5 a week pocket money, which we transfer directly into their banks every 4 weeks when we get paid.
It's then up to them to choose what to do with it. When we first started this, they went a bit mad buying in-game purchases on Steam and Xbox, ordering silly things off Amazon etc. Now they realise that if they splurge it all straight away they'll have nothing left for the month!
My older son (15) tends to use his for planned trips out with friends - cinema, McDonald's and so on. The younger one (12) is less inclined to fritter and will save his money up for a larger purchase. They both have different approaches, but they've addressed the same issue which is, they can't just keep turning to bank of Mum and Dad whenever they want something.

My lot don't really get pocket money, they get a few quid here for the work or any jobs they do, but they really have to earn it the way I used to, and I think they appreciate it more.
My middle son was 13 when he realised how much he liked having a few quid in his pocket, so he became a bit of a Del Boy! He would always be making things and selling them to friends, (usually caricatures, which he is very good at!) and doing odd jobs for the neighbours who paid him well for his dog-walking, grass-cutting, car-cleaning.
He loved the freedom of his money being HIS money, and being able to spend it on the things he loved, in his case, art supplies!
He is 17 now and since he was 16 has been cleaning at the local school, I'm very proud of him and his work ethics, he's saving for his driving lessons atm, and it means so much to him that while a lot of his friends might have it all handed to them, he is working hard, and I think it really shows in his attitude. Tbh he is so much more humble and grateful than a lot of other 17 yr olds :-) x

I started talking to Piper and Daisy about saving when they were starting school. I haven't started with Leo yet because he's too young.
I explained that the pocket money they got from Grandma and Grumps could be used immediately to buy things they wanted or could be saved to build up a bigger amount so they could buy bigger things. I asked them to think about big things that they had asked for but had been told 'it's too expensive' and asked them whether they wanted to spend all their money, save all their money or do a bit of both. Both of them decided to spend half and save half.

My DS IS a little young at this moment in time, so just a simple pot to collect penny’s in is a good start. No need to rush.

Pocket money and saving for certain things.

My kids save! We use rooster money!

Ive never paid my children to do chores round the house as i never would expect them to do them. They do clean up after themselves and do their own rooms so ive never had need to.

I give my children money as and when they need it but within reason.

I have three children and if one gets some moeny for something they want then the other two get the equivalent. I have always encouraged them to save in a savings pig and when they get to a certain amount they usually want to take it to the bank to put in their account. My eldest two have their own bank cards for their accounts and have their account on their phone so they can keep track of how much is in their.

We have always given pocket money for jobs around the house, and when really little we bought them piggy banks, now they are a little older, a childrens savings account makes them feel very grown up !

Dcs get £1 a week for a tidy bedroom, and can earn more for additional chores. It's simple at this stage to talk to them about particular things they want and if they get x now, they won't have enough for y later.

We give DC pocket money and they also have a bank account where they can save up pocket money or Christmas/Birthday money and some Premium Bonds.

They have to do a few jobs like putting clean clothes away, tidying up their things etc. I try to make them aware of things like reduced items in shops, the difference in price between different brands etc.

We are also trying to explain how money works. It isn’t everything but it is very important. Things like why you can buy a house in one part of the country for the same price as a flat in another, and the importance of not wasting money.

By demonstrating the issues associated with debt and contrasting that by emphasising the benefits of thrift.

My boy is 10 and for Christmas I gave him a cool wallet with a gohenry pocket money card and the promise of weekly pocket money...I haven’t had to teach him about saving, he has realised that if he spends it, it’s not there...a case of realising one cannot have ones cake and eat it....although he asks to do chores to earn the odd pound to spend at the shops when we go. X let’s see how long this last once the tweens turn into the teens!

We used to get our children to save half of any birthday/christmas money in their bank account. They received pocket money monthly but could also earn extra by doing additional chores.

My husband's gran always said 'Spend a little, save a little' which I tell my DD. It's cracking advice as it's important to have money to one side for rainy days and to spend some in order to enjoy life as you can't take it with you.

My eldest is 5 and he is just starting to get his head around money - he has a money box which he puts any coins he gets in to and we talk to him about needing enough money for expensive things and needing to save etc.

I save most of my DDs birthday and Christmas money in a savings account. They don't need loads of toys and plastic goods. Their room is full already.
We like to go to the bank together and then after talk about the wonderful things they can get or do with their money when they are grown up.

My dc has his own bank account and he goes regularly to put money in and has a book so he can see how much he has saved.
He also has a piggy bank at home for small treats.
If he wants something he is asked to save up for it rather than having it bought for him and he is also informed if something is too expensive and we cannot afford it.

Oh, the importance of saving (as well as budgeting) is something I really want my kids to grow up understanding!
At the moment, DS is still very young and hasn't got much concept of money yet, but he has his 'blue bear' piggy bank which he enjoys putting pennies in (especially when he finds them himself on the street!).

DS has never really been a kid to ask for new toys when we go shopping or whinge for treats, which is great for us as parents but it would open up the conversation about spending money and saving up for things.... He doesn't get pocket money yet, but I always try and put at least £50 in a bank account for him around his birthday each year. It's not much, but by the time he's older it'll be a little start to his savings for him. My hope is that by the time he's old enough to have a regular allowance, he'll have inherited my common sense around financial matters- at which point he'll be involved in the responsibilities of choosing a bank account/savings plan and take over the management of it himself (I remember the pride with which I had my Post Office savings book when I was tiny!).
IF on he other hand he's an absolute irresponsible numpty with money matters, I'll be keeping quiet about his secret savings stash until he's at least 18!

We have always been open with our children re money, we discuss household bills, saving for things, different accounts and shares.

When they were young we made things very visual. All loose change would be put into a large whiskey bottle. As a family we would save, my children became very good a spotting dropped coins!! The children would add the change to the bottle. Over a year this would build up, just before our summer holiday we would all empty the jar and the money would be used for holiday treats, everyone took a share. We still have this bottle, it was something my dad did for us when we were young.

Both children also had a building society account. Inially when very young (under 6) I would be in charge, I would be given birthday & Christmas money for them, as they did not really understand the value of the money, I would pay this into the account on their behalf, and allow them to spend some of the money only.

When they reached 6, they were shown their building society accounts, by then they had a few hundred pounds in, and had interest added - which was a great motivation and discussion point. They were then involved with the paying in of birthday money.

When my children turned 11, we took each one to open a bank account with a cash card. We pay each child monthly pocket money by standing order, 50 pence per year of age, x 52 divided by 12. We wanted to get them used to monthly pay.

This money is given with no strings attached. Chores are carried out in our home for free, as we are a family and work together to make a home.

The children are given guidelines on how this money can be spent, I.e, they must buy their mum and dad a birthday and Christmas present, no more than £10 can be spent on this, homemade presents are welcome as are things from a charity shop.

We have taught them how to file statements and how to check their accounts each month.

Both my children (now 13 and 11) are very money aware. Neither have ever taken a penny from their building society accounts, both manage their money well. My oldest now is looking how to make more money, he is saving for a new PC. He has various schemes that are working well for him.

As parents we also have a child trust fund accounts, started by the government voucher when they were born.

I give a small amount of pocket money each week to my just six to DD, as she loves LOL dolls she knows if she saves for four weeks she can have one. (I give her the extra £1 difference as bonus for saving!). She seems to enjoy that more than buying tat in shops. But sometimes she just wants too anyway.

I am however looking at the gohenry card. I think it looks a really cool idea. I just don't know if she's too young yet.

We have always talked about saving. Mainly because I want them to be better with money than either me or their dad.
My ds (9) asked a while ago when talking about houses. If he started saving now could he buy his own house when he's grown up.

My dd 13 got her own cash card at 12. A normal one. She has her pocket money put on it & has manages it really well so far. She likes to have her freedom with it. Not having to ask all the time. When something is coming up (holiday/school trip etc) she saves really well. Shes Not perfect (far too much pound land & macdonalds on her statements for my liking) but it's been a good thing &
I will do the same with the others when they are 12.

We have a "birdy box" they use to save for things they like / want to buy

when my dd started secondary school we set her up with a bank account where we pay her pocket money into, she can then use this money for trips out with friends and anything else she wishes to buy. I encourage her to save it if she knows theres a trip coming up she wants to go on or if she wants to make a bigger purchase. she's not perfect with it and does buy sweets/snacks etc, but she always somehow mansges it so she doesnt miss out and without having to ask us for more!
with my younger dd she gets some cash and if she wants to buy a bigger toy/game we encourage her to save or wait for her birthday/xmas and ask for money from relatives so she can save up herself for these things.
we are open with them in our discussions about having to save up for family holidays/home improvements etc and how we manage our money and can't do or have everything we want immediately, sometimes it means waiting and saving up for months!

My DC loves to save up his money for things he wants. He likes to count his piggy bank savings every pocket money day. When he has almost reached his target for something he wants. I will give him the remainder so he can buy it. He understands that the more expensive things are, the longer it will take to save. I told him he could sell his toys he doesn't use or play with anymore, so we had fun photographing some of them and selling on EBay. He got really excited when his items sold and the boost it made to his money saving.

My little boy is only a few weeks old but we've put any money we were given into an account for him and will get him to put a small proportion of any money he's given for Christmas and birthdays in there too. My parents did this for me and let me have the money when I was older - it was amazing how much it added up!