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.

[sharond101]

My children have banks. One for holidays and one for special things. When they want something they are encouraged to save for it. I often contribute too. They just excited counting their money and get given small amounts for doing chores.

[lolly2010]

We give them pocket money and encourage them to save it for something they really want, When we go shopping I teach them the best way to buy things, unit cost etc. I show them when I have saved, I encourage them to check the price of something and work out the best way to buy it.

[LKRJM]

We give our little nephews £2 each everytime we see them (once a week/fortnightly) £1 is for spending and £1 is for their moneybox. They’re only 5 and 3 but they understand not to always spend everything their given straight away!

[YourSarcasmIsDripping]

I started with DD since she was 4. She has a piggy bank where she gets to put all the coins she finds up to 50p. Once a year (summer in general) we go and exchange it for cash and she can buy what she wants. One year she saved for a paddling pool abd some toys,one year for a scooter and last year for a trampoline (we topped it up). Last year she also got an extra jar for her tooth fairy and chore money(jobs that are hers she does because she has to, jobs that I'd normally do she gets "paid" for). With her money she took full advantage of the Alton Towers gift shop and arcades, no limit from us. Even though she wasted a lot, she still came home with a bit of change..for the ice cream van.

I give her opportunities to go out with her own money and pick what she would like, would one big thing be better or several small things, add up what she can buy with her money, would she like to have some left etc.

It's her third year now and she carefully thinks of what she'd like and when.

[CharlieandLolaCat]

My DS is nearly 5 and on Sunday he broke two things that it cost me about £15 to replace. I decided there had to be consequences so I emptied the £6.04 he has in his money box (he has some money in the bank but I'm not quite that mean) and took it from him as his contribution to his breakages.

Anyway, it is his birthday next Monday so we sat down this morning and discussed pocket money. I will give him 50p a week, (contingent on him doing as he's told in the mornings) and we will be talking about what he can do with it each week. So one weeks money will be x. But if he waits and saves it for another week he could buy y. And if he saves up long enough he can buy his own plastic tat covered magazine!

He is due to receive a reasonable amount of money that my parents are saving for him when he's 18 and I am hoping this means that he won't spend it all in a summer of excess if he starts thinking about it now. Equally, I have been a bit rubbish with money over the years and now literally track all money in and out of my account so I don't just spend it all so hopefully this will help him to not be like me!

[kateandme]

the odd thing I think are useful.hen out at the shops.how much money we have for shopping and how its added up.helping them add up grocerys etc.this helps them see things cost money.
when they get an ice cream or choc bar they will no they have 60p etc.
they have piggy bank and it can be used for penies to pounds.
they might get a few pennies(littllies)for helping with washing seomtimes.
if they get money from relatives or birthdays we explain they can use it for their toys or save it and why.so if we save that's how we get nice houses and holidays.

[MrsFrTedCrilly]

We give pocket money in exchange for some small jobs eg making a bed, putting away washing/toys etc and encourage dc to save for stuff they want, DC 7 & 11.

[TellMeItsNotTrue]

Giving them pocket money and, as much as it hurts, letting them blow it all and regret it. They learn far quicker through experience and it's better than nagging from both of you for weeks about them wanting to buy tat and you not wanting them to buy tat

Also, when we go on holiday or days out they each have their own purse (kept in my bag) with spending money, they can buy ice cream, tat, souvenirs, waste it in the arcade, but once it's gone it's gone. It saves pestering for things as the answer is always yes, with your own money. Things aren't as appealing when it's their own money they are spending and they normally come back with money left. I do still buy the odd ice cream etc but it's if they ask at a time I wouldn't be buying one.

[buize]

I give my child regular monthly pocket money out of which they are to save a little. It hardly ever happens, so I’m thinking of setting up a DD into a savings account. But that will defeat the purpose of teaching regular saving.

I do insist that half of all money (over a certain amount) received as a gift must be saved.

[CopperPan]

We've opened savings accounts for the dc from birth, and we've put birthday/Christmas money in there so they can see how it builds up and earns interest. As they get old enough to have current accounts (by age 11), I've encouraged regular saving of their pocket money by setting up standing orders for a percentage of their pocket money, into a separate savings account. It's what I do myself and it's worked well (except for DD2, who tends to raid her savings account by transferring the money back to herself before the end of the month).

[beenandgoneandbackagain]

We have a holiday fund for spending money for holidays, often two or three on the go at once. All the loose change goes in there and we take it to the bank to sort a week or so before the holiday. We talk about how things can cost different amounts in different countries, e.g. icecream is very expensive in one holiday destination but cheaper in another. It also helps teach about exchange rates and different currencies.

[NeverTwerkNaked]

Our 4 each have pocket money, and we keep their running total on a whiteboard in the kitchen rather than dishing out actual cash (will change when they are older of course). It’s working well because the ones who are spenders rather than savers are starting to realise that their impulse purchases mean they never manage to save up for big things, so they are slowly getting better at choosing to plan rather than spend for the sake of it. My ex was hopeless at spending so I want to teach them good habits.

[NeverTwerkNaked]

(Hopeless at saving that should say! He was too good at spending!)

[choccyp1g]

Started with basic maths, counting biscuits, sharing them equally, then when he was about 7, DS got very interested in the property newspaper that came through the door.
When he realised that some houses around here cost literally millions
and that the estate agents take a percentage he decided on his future career!

[Pushpull]

We talk a lot how much things cost and weigh up whether we really want something based on that. It's helping the dc to understand relative value. They understand that we need to work to get money as adults, but i don't tie the kids helping out to that, everyone who lives here needs to help, it's however live in a nice house

[MouseRatFan]

My dc have to complete their weekly chores to earn pocket money. This goes into their bank and they can have full control over what they spend it on.
they have learned that the prefer to keep some in reserve and not blow it all in one go.

[Theimpossiblegirl]

Mine earn pocket money by doing set chores (I won't pay them to do their rooms though, that has to be done before the paying chores).
They sometimes save for bigger things and sometimes spend it on tat smaller purchases. It's the same if they get birthday money, they know that if they save they can get bigger ticket items.

[torthecatlady]

We've started exposing to ds that things cost money and that money isn't always freely available.

He wanted to buy clothes for his build a bear so we explained if he saved his pocket money for a few weeks he could buy them himself.

We got him a nice piggy bank and helped him count the coins. When we went shopping and he was able to count out the right money and pay for the clothes he was so pleased that he is already looking forward to saving up more money to buy new things.

We haven't explained to him about saving for the long run yet as he is still a bit too young.

[InMySpareTime]

We've been saving their child benefit into an Allshare tracker since they were born, we show them the statements when they arrive.
We have a spreadsheet of household income and outgoings, we involve the children in going through bank statements each month.
They now have banking apps to track their balance and spending.
I like that they have taken our attitude to saving and technologised it to make it their own.

[HotChocolateLover]

My son is encouraged to put a little bit into his Child Trust Fund. He’s not that far off getting access to it now and he’s determined that he’ll have enough to pay for a little car and the first year of insurance. It’s been really good letting him have something to aim for and letting him see the money adding up over time.

[MargoLovebutter]

So how do you teach your children about saving?

Since they were really small, I've had to say "no, I can't buy you that enormous Playmobil fire engine, as I haven't got enough money." So, from really early on, they knew that buying things cost money and if you didn't have enough, you couldn't have it. As they got older, I encouraged them to think about saving their birthday & Christmas money from relatives so that they could buy things they wanted.


Do you give your DC pocket money for doing tasks?

Not everyday tasks, no. Everyday stuff is what keeps us all functioning in our house and no one gets paid for it. It is part of being in a family and you all chip in, so that no one person is the family dogsbody. However, for big things like jet washing the deck, cleaning the car, cleaning the windows etc - then yes, there is a monetary reward for doing them, because I'd have to pay someone else.

Do they have a money box or their own savings account?

Yes and have done since they were really little.

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?

See point above.

As they've got older, I explained how mortgages work, how the stock market works, the different types of bank account, why you need to be careful about paying credit cards off every month and even how to spot the cheapest deals in supermarkets, which isn't always the special offer!

[Bumblebeans]

At 4 DD is too young to understand money but we do explain that we don't have enough money to buy everything all at once. We explain that we are saving some of our money for when she is older to help her and to build on our house

[MrJollyLivesNextDoor]

I save a monthly amount for DS (8) - I've told him it's to cover his driving lessons etc when he's 17

He sometimes puts Birthday/Xmas money into it, plus odd pocket money from grandparents etc

He likes to see the balance going up, I think it's a good thing

[JanuarySun]

My 7 year old doesn't really get money yet. We try talking about money in terms of how many toys you could buy, or how long you'd get 50p a week to get an x. But I'm not sure it goes in...

[janney3]

If the children want a more expensive item I encourage them to save their pocket money for a few weeks or months and buy it themselves rather than me just purchasing things as they want/ need them.
I also try to get them to shop around and not just buy the first item they see.
My daughter also has her own debit card so she can see it mounting up if she resists the urge to impulse buy.