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.

[EllaAutumn]

My litle ones are only 5 and 6 so not putting too much emphasis onnsaving right now, but they do have money boxes where they put any money from the tooth fairy or what anyon gives them.

[DoAllMeerkatsComeFromRussia]

I have never forced my children to save their money, like some people I know. I think if you do that, then as soon as they are able they'll probably blow the lot! Whenever mine have decided they want something that costs a lot, we've helped them work out what money they have and what money they'll need and they like seeing the money grow. So we've done it like that to teach them about saving up for things. We haven't really looked at saving for an unspecified rainy day. I think that's too abstract for a child.

[baconbap]

By having to save pocket money for something they want

[FrenchieMum2Be]

We have a good old fashioned piggy bank which we break into when necessary

[Apple40]

My two loving saving there money and even have different money boxes for different value coins. They do odd jobs around the house to earn extra money. They like to save it all up and are really proud of themselves when they reach a target amount. This is then sometimes spent on desired toy, book etc or put into their bank accounts.

[JayJay1874]

Introducing pocket money as early as possible, limiting random treats and purchases to make them wait for it, with a little saving. Explaining the cost of things, especially when things break.

[becks213]

My daughter gets £1 a week from her Grandad which she saves up to put away in her bank or something she really wants, she also asked for Money for her birthday and Christmas as she wanted to put it towards a toy that was very expensive which I couldn't afford by myself. She is very good at saving and understands the value of money which I taught her from a very young age and that you have to work hard to earn it, she knows mummy works a lot of hours to get the money we have and we have to look after it carefully.

[cathryn1]

we sort her old toys out and sell them on ebay, what she makes from them she can go and put in her own bank so she can see the pennies growing

[badgermum]

We have a little book where we tot up money rewards for chores and achievements and then when they reach a certain amount say £5 or £20 they can cash it in and this has encouraged them to save up for video games or toys they really would like, My older boy also has an account with a cash card and he loves paying money in and seeing the balance grow, it also makes him reluctant to spend money on pointless things.

[cutdcrap]

We have started talking to our DC about not just saving, but also investing properly. Its simple : they earn quids for their help with the chores, and then get a multiplier for their behavior over the week (like eating veggies, getting up, sleeping on time, full attendance at school, homeowrk, extra study, etc etc). The children decide to either put this contribution towards an expensive purchase (likely towards xmas) which then helps them earn another kicker on it. So, as an example if they earn 5£ a week + 2.5£ kicker for all good behavior; that makes it 7.5£ per month = 90£ per year. if they decide to commit all 90£ towards an expensive gift over a longer period (12 months), then the bank of mum and dad will make an equal contribution and they can buy 180£ worth of stuff. However, if they decide to only save for 6 months, the mum and dad contribute substantially less. This helps them understand the need for long term savings. Ofcourse, taking out some money here and there is permissible. Once we are sure they can handle this responsibly, next step is bank accounts for them

[broughton100]

As soon as they are old enough to understand money, give them a small amount of pocket money and encourage them to plan what they would like to buy. If they save some of their money, offer to match the saving and place money in a special jar or money box. When they are old enough, start an account and put some money in on birthdays or special events. Let them see their savings mount and encourage them to add to them and plan for what they should be spent on.

[debjani]

My eldest earned pocket money by doing extra maths online to buy extra clothes, shoes etc beyond the basics which I pay for. My youngest prefers to do chores and get paid for them and which goes towards the Netflix subscription they wanted. Any excess goes in a money box, again to pay for extra clothes, shoes, toiletries etc

[nanoobaku]

When we go out shopping we give them a pound and they can spend it how they like. They soon realise it doesn't buy what they want so they keep it and wait for another week when they get another pound. The are starting to understand saving buys what they want and the concept of waiting

[molly57]

Show them what exact amounts can buy. Keep it simple and small. Give them an amount of money and then take it away bit by bit when used to buy something they want.

[Twiglet1983]

My son is too young for this yet but I feel leading by example is so important. He needs to see us making the right choices as he grows up

[snare]

My children are given pocket money and are encouraged to save for items they want or earn extra money.

[tishist]

I find the piggy bank saving method a good motivator. Maybe when older spreadsheets would be good! :)

[Tentomidnight]

I try to encourage my DC to save at least half of their pocket money, and to spend it more slowly than they earn it, so that it builds up.

[spanglisher]

my son has to earn his pocket money, the more chores he does, the more he earns so that he understands the correlation between earning and income. He always has a list of things he wants to buy and has found it easy to earn/save up towards even three figure targets, but has no interest in unspecific savings so doesn't yet have a savings account.

[Jocelynne123]

I have always encouraged my daughter to save her money. She understands that I have to work for money so we can't waste it. She is very good at saving hers for bigger things and knows if she is saving for something and not wasting her pocket money I will help her out. I take her to carboot sales so that she can get toys without spending lots and she loves that. She is a little sweetie and I often find around Christmas, my birthday and Mother's Day she is saving her money to buy me something. I sneak in a little extra because she is so good. Xx

[HelenSw4les]

I do believe pocket money is a great way to help children understand the value of money and "once it's gone it's gone". This worked with me as a child and money doesn't burn a hole in my pocket, I hope I can instill the same values in my children.

[Zzzexhaustedzzz]

I haven’t taught my children about this specifically. They value their property and pocket money enough for me to feel they can decide for themselves. As long as none of them are tempted into debt and or gambling I will be pleased. I’ve not been able to save money so far in my life! I also think there’s something quite distasteful about the mentality that says this should be a priority! For what!? If you have a specific item to save for ok, but to just hoard cash? Not my way of life!

[pussinwellyboots]

We have two boys aged 8 and 10. They get pocket money paid into their bank accounts £10 each month. When they see something they want we discuss taking the money out of their bank account to pay for it (if affordable straight away) but if a larger item we discuss saving up. We are open with them about not having the money to do everything that we want and having to make choices with what we spend money on.

[Emmamaryd]

A money box for saving the pennies and a building society account for birthday money.

[runkaterun]

Our eldest is only 4 but I explain that if we spend money on something that means we can't spend it on something else. I'm trying to teach her not to be wasteful to start off with...