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.

Encourage them to save their pocket money and birthday gift money towards any item they have their eye on. Separately put money aside in child isas/ savings accounts and will go through them with them when they're older and able to properly understand.

We have 2 piggy banks. Any money is split 50/50 between the 2 piggy banks. One is for spending and the other is for saving. Once the saving piggy reaches £10 we add £10 and then repeat this as £20 £30 £40 onwards.

It’s important for kids to know they can’t ask & have. I’ve treated saving as a normal part of life with DC & now she always puts part of her pocket money away

We have big bottles for each of them to put their change in which the like. My eldest is now just old enough to really appreciate money and saving and he has saved up his pocket money/birthday etc. to go halves with me on a PS4. Was very proud of how diligent he was.

They are too young at the moment but I've opened a savings account for them and will explain things when they are a bit older and getting pocket money.

At the moment i dont ttach them about saving, where is the fun in them having money if they cant use it as they please? your only a child for sucha short time so they should be enjoying themselves not worrying of thh future!

I will teach then to work hard and save

We give our children pocket money for helping out with jobs around the house. They will either save it for something big or occasionally buy sweets on a weekend. They have bank accounts too so sometimes choose to put birthday money or Christmas money in those.

We teach them to save up their pocket money and doing chores for money so they can things they want.

My youngest two are now at secondary school and instead of putting money on their dinner cards we pay them the money that we would have spent on their lunches. They then come shopping with us and buy themselves ingredients for packed lunches for some days so they save themselves some money each week. This benefits us as we are not making packed lunches and it is teaching the children about budgeting. My son then puts the majority of his money into his savings account. My daughter tends to spend more of hers but she is learning about budgeting to purchase the things that she wants.

As they got older they were allocated a set amount of money for birthdays and christmas and they decided how it was to be spent or if they wanted to save it for a bigger item later in the year, that way they learnt the value of money and how to budget and save it

We have taught them that they have to save up their money for things they want and to earn more they can do extra chores to help around the house. I think it's important for them to learn from an early age that you can't always get what you want.

They both get weekly pocket money and can take out what they want if they feel that they want to buy something and work out whether it justifies the cost.

My kids think everything is disposable, so if they break something, mum and dad will pay for it again. That is until I made them start using their own money (usually gifted by nana) to replace things. This is teaching them what things cost.

Ours have pocket money but it is not linked to chores. They also have a bank acount where they save a little each month - even if just a few pounds. I also encourage them to sell their unwanted toys etc to make a few pounds rather than just letting them gather dust! This helps them look after their things well.

It’s important to start at an early age getting children to pay for goods in a shop using pocket money and encouraging children to save towards a wanted item instead of just buying it for them

From the beginning, the children have been taught to save money that has been given to them as gifts, birthdays etc and any excess money has been put in their accounts, however they also can use some of it at the time to buy something nice. Its amazing how the savings can grow over the years

DD is too young to understand about money at the moment, however we opened a bank account for her when she was born. Every penny she has gotten since then has gone in there, when the time comes and she is old enough to understand we intend to teach her that money is an important part of life and saving for the future is a good idea. I want her to know that although money is not everything it is certainly beneficial and should be managed with care, by putting some aside little and often.

When my children were small, I taught them about the value of what they got when they spent it, rather than how to save.

my son gets money but only if he does jobs around the house for example i will say hoover upstairs in your room and i will pay you 2 pound i've taught him that money doesn't come for free, he's really a better saver now than me ! he saves up his own money and buys what he wants with it he also does jobs for his grandparents too, i do of course treat him as well if he's done well in school etc xx

My son is six nearly seven. Due to child care issues , I had to leave my job. We now live on a single income. Prior to this, it was rare myself or my husband would ever say no to him! Obviously now, it is a word well used. He had to learn the value of money pretty swiftly after my second came along, and I could no longer work. I am extremely frank, I taught him about money and how to calculate things, before he even began the topic at school. It has been drummed into him about how working hard pays, if you work hard at school, you will get a good job that pays well and you will be able to buy a house and car. If you don't you won't! My two both have a bank account where they save their pocket, birthday and christmas money. He understands that money is worked for and I do not allow him to buy anymore toys. This is to save for when he is older. I have come to realise he now knows exactly the value of money. This year every school selling event he has attended, he spent very little and has come home with the majority of his money. Instead of buying loads of cakes or rubbish! job done I think!

A piggy bank and a written target (toy, game, book)
Every week we add up what's in the bank and work out how much & how long to go till DC gets there.

Teach them to save a little of their pocket money each week when they want a bigger item. Also monetary gifts at birthday and Christmas, some go in to a savings account for things they might want in the future.

I have been giving a fixed spending money to my DC since age 5, and they are told to record all incomings and outgoings. If there is something rather expensive they really want to buy, they have to contribute some from their savings. The basic message to them is to understand what is affordable within the money available to them, and do not spend beyond what the have. My older one is 15 now. She does a bit of part time job, and we suggested that she saves at least 10% of her earnings. She understands the value of money very well and only spends within her means. The lesson has to be taught from a very young age to become a habit of saving and spending wisely. One of the most important lesson that parents can given to their children, both my husband and I believe.

We put some money into a savings account each Saturday morning. My DD comes with me and helps to pay it in. Usually, we set a goal as to what we're saving more (a new toy, game, holiday spending money etc.) and I find this helps to encourage her to save. I agree, childhood should be about having fun and not worrying about money, but I was taught the concept of money as a child and it's certainly taught me a lot. Friend's children haven't been taught this and whenever we go out it's 'mummy, I want this, mummy I want that, mummy I want a toy, mummy I want sweets'.