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 pocket money towards (part) payment of any large item they want to buy

We set up bonds for them at an early age. And then we just explained about how to balance spending and saving. They seem to have done quite well!

Start small, when they're little. A few pence here and there. Then build up to odd jobs when they're older. Outside of birthdays and Christmas let them earn what they want (even if you don't need to).

They have money boxes each and I teach them about the importance of money saving

Luckily I don't have to teach my daughter to save. She's almost 11, and won't spend any of her money. She still has money left from her birthday 9 months ago. Maybe SHE should be teaching ME how to save...

when he wants things we make him do chores to earn money to give perspective on what its value is

Dc both have a savings account that birthday and Xmas money goes into.

Dc2 (12) is old enough to have a bank card, pocket money and check his account on the app so he can keep track of his spending.

They both know mum and dad pay money into a shares fund for them to have when they are an adult, this has lead to interesting conversations with older DC about saving, interest and shares which he now understands.

If we are out I sometimes give them a few quid and they get to choose what to spend it on or they can save it and get something more expensive next time, surprisingly they often save it!

I also explain to them how much things cost and the decisions we have to make eg the car just cost £500 to fix so we have £500 less to spend so we won't be getting me a birthday present (!) or having a few days away at Easter like we normally do.

I take them shopping with me, I give older DC an amount/ budget to get eg the food bank items or the fruit items which he thinks is fun and teaches him how to budget.

we opened saver accounts for all our DCs when they were born and believe it is our job to educate them on money management. Good spending/saving habits are important to learn at an early age. we encouraged them to save half their pocket money or to save up for things they want to buy. Our eldest DD has just bought her first house.

They have a moneybox each and their money from chores goes in that

At the moment mine's too young, but when it comes to pocket money, I'll be encouraging him to save some for the bigger things he wants.

My children have a piggy bank and will have a bank account that they can access as they grow older. We talk about the value of things and having to save up for higher priced items.

We reward our children for helping us out around the home, such as keeping their rooms tidy. If they want a particular item, they are able to buy it with the money that they've saved. In this way, they have learnt the value of money and appreciate what they buy from the money they have saved up.

We save half the pocket money into a piggy bank until it's full, then I let her choose whether that goes to the bank or not at the end. Funny that I teach her really as I don't have the same discipline myself!

I plan on giving them money for chores and then showing them if they save it up each week they can then buy better things with it. I don;t really want to start this until they're a bit older though, when I was younger we never got pocket money until we were older and could appreciate it.

when the time comes we will always try and make them realise that money has many uses and is very valuable.

My Daughter has a 'piggy bank' she six, she can earn up to a pound a day, which involves helping Mummy do simple chores, keeping her room tidy etc. She has the option then of buying a magazine, or saving for a bigger item (usually a DVD, or a game for her DS). Personally I think magazines are a bit of a waste of money (they just end up in the recycling bin after a few days) , so I encourage her to save for something that will last her longer and she will get more enjoyment out of. She also trades in her old games (I also trade in my old electronical goods), for new ones. I remember saving for my very first thing, I'd saved and saved to buy a doll I'd seen, and I remember going into the store and handing over all my pocket money, I was so happy and felt really proud I'd saved for it...!

... Baby Expressions... It's just come back to me. It used to make these odd faces and used to cry, drove my parents mad. I think they would have been happier if I'd bought magazines!

We opened a savings account so when he was sent or given money from friends or family he could save up for something he really wanted.

I've always explained that if they save their birthday money then the savings people will look after their money and add some more to it for keeping it there, and if they let the money build up then they will have some money for when they want to do something special when they are older. Most of the time they don't think about the money they have saved but rather have got into the habit of saving instead of saving with the incentive that the more they put away the more they will have at another time.

My Children have more money than me!! My eldest has dipped into hers and hates to see the balance going down so she has found a little job braiding hair and loves to see the balance going up. It is good to encourage your children to earn their own money at a young age!!

my daughter participates in a saving club at school .. she allocates half of her pocket money to saving so she can buy a big toy later.
good life lessons

My son is very young but I've already been teaching him that we need to save up for bigger things like holidays. He has a little savings box in the form of a personalised train which he loves. I opened my first savings bank account when I was seven and I think it really helped me to understand the value of money from a young age.

Hi Everyone

Growing up with a single mum, there was never much money going spare so I was taught early on the value of saving my money. The habits still stick to this day.
I definitely intend to teach my little one the same values when they are a little bigger. Almost more importantly they will see mummy and daddy do the same, we have savings jars that we put in a £1 every week rewarding ourselves ticking the number (e.g. £1 week 1, £2 week 2, etc up to week 24 then back down again - leaving a month off at Christmas). This is the money we then set aside for holidays the following year. Our little one will have his own little jar and tick list (although not with £1's).
I believe children learn the most by replicating what they see grown-ups do.

My 3 sons have "wish lists". Could be items they really want or an experience they want to try and me and my husband set them saving goals so they can see exactly what they need to earn and save. The journey towards each saving goal has little sweeteners to keep them motivated i. E for every £10 they save independently, we add £5. So they can save decent amounts reasonably quickly. They also have long term goals i.e my eldest son wants a new XBOX so we encourage him to not "cash out" his savings for smaller items.. Rather, keep going and ultimately he'll eventually save enough for said xbox! We tweak it for each child but they understand the premise and are usually enthusiastic about saving up.

I take them shopping with me and get them to actually buy stuff - gives them a really good insight and understanding of value when they can connect how much a pint of milk is, etc.