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.

[natthem]

We give them pocket money and they work out how much to spend on sweets, and toys and keep a record of how much ( if any ) they can save.

[xxgeexx]

i always talk to my kids about saving money and budgeting when we do the shopping, also how much things cost cheaper alternatives etc. I think the best way is to give them an awareness x

[abigailflo7]

My son is a good saver now he is older and that came from him saving his pocket money for things he really wanted when he was younger and me not just buying him everything he wanted. I think it's instilled into him the importance of having some savings to fall back on in times of need and not spending every penny you earn!

[janeyf1]

My little one loves buying things, so as to help her appreciate her the value of money, she gets rewarded with pocket money for helping with chores and trying her hardest at school. She is becoming more sensible and realises saving towards something is good

[happysouls]

Piggy bank so that a child can actually see the money accumulate! Bank account as well. Earning pocket money to help understand where it comes from and how hard it is to get hold of! They need to learn to appreciate it's value and not treat it lightly! Talking about something to save for and then working towards it, little goals to start with!

[kerryv]

I encourage them to save for bigger things that they want.

[muppet1501]

I always say to my children to not spend money straight away and to save it for something they really want and what they're going to use.

[CLINKERVISION1]

We have never had much money but I've been open with my kids with bills how much things cost of we want something where we have to cut back.

[maxbamos]

We're not teaching about saving for the future as they are too young at the moment, but they have a bank account that their pocket money goes into so if there is something they want something that's expensive they have to save up for it.

[Scoots23]

We made our children a savings tube each, which consisted of a clear plastic tube mounted on a small piece of wood. The tube was the width of a pound coin and they could decide to put all, some or none of their pocket money in it. Up the side of the tube we wrote amounts so that they could see how the pile of pound coins was growing and what it amounted to. They loved watching the pile grow and used to get excited the more they saved.

[sootyo]

Firstly through example , and then by giving them pocket money to buy the things the want through the week. Once the money is spent, that is it.Though if they save it, they can have the pleasure of buying bigger things.

[ThemisA]

I have always given pocket money and taken off tax (I really do!) and allowed them to spend half of the rest and save the balance. My eldest buys premium bonds and reinvests any wins just for fun. As soon as they are old enough I explain what happens to the money I earn so that they understand that the money we work for is largely spent on bills. If they earn money I allow them to spend it as they will. They are all savers so I wonder if there is a genetic element!

[lizd31]

When I was a child my parents taught me to save my pocket money so we could buy ourselves things we wanted. As a young teen before I started work I bought my own bedroom furniture so that I could decorate it as I wanted. As I worked in banking all my life I've always given financial advice so been very good at budgeting & never been in debt so I like to play at shops & banks with my great niece so that she knows how to handle money. She's only 5 but is very good at Maths already so I think she'll take after me...hopefully

[swebb1985]

Age appropriate chores and choosing how to spend pocket money are the first steps for me. The consistency of saying, 'yes, you can have something but you can't have everything' when out and about in gift shops etc I think is a good way of setting boundaries that are based affordability rather than 'mean mummy won't let me have the fun toy'!

[Blainalass]

Pocket money for chores, used to buy sweets, etc

[sm2012]

My daughters get pocket money each month and I have advised them about saving for something rather than just buying sweets etc. I give them it each month so they can put aside about a 1/3 to save and still have a decent amount to spend.

I'm planning on getting them their own bank accounts with debit card when they are 13 and will open an online savings account at the same time to encourage them to put some money into that each month and keep track of their money.

[juju3]

Have a moneybox but more importantly talk about money and saving and about how it is easy to waste money on unnecessary items

[maryandbuzz1]

We gave our son pocket money so he got used to paying for things himself. He soon got the idea that if he saw something he wanted he had to wait and save up for it. We sometimes felt bad if he asked if he could have an advance but I believe in not buying unless I have the money for it so we didn’t give in.

[bevmichelle47]

Children learn by example, so the best way i teach our DC about saving money is to save money myself. I've got my own jar of money that i put funds in regularly. When we're out shopping, i show the children how to discern between various prices and explain why buying one item makes better sense than another and that if you want something that badly you've got to save for it.

[kimthomasandaimee]

To keep it in my bank account.

[footdust]

I don't really like to link pocket money to chores. I expect my DD to do a certain amount around the house eg keep her room tidy, washing in the washing basket, put clothes away as that's her responsibility as a member of the household. She gets a set amount of pocket money each week, and he does have the option to do extra tasks if she wants to earn more.

[SocksInPeril]

My son is still a bit little too young to really learn about savings but I do have an account for him already. However I do try to explain to him the value of everything in terms that we would understand.

[Ellie2345]

I encourage both my children to save their money, and not flutter it away, better to get something of worth then spend it all on junk, but also I encourage when they do want to buy something specific with their savings then we shop around and find the best deal, they are understanding that it is best to save

[gd2011]

Open a savings account for them so they can save their Christmas and birthday money for something they really want.

[Pastychef]

Our DC aren't 'wanty' kids so have always saved their allowance & any gifted money until they discover something they really do want. DS has just decided that he wants a Nintendo Switch and is scouring Ebay to get the best deal.