In recent years secondary schools have been required to teach pupils how to manage their money. Lessons in ‘financial mathematics’, covering problems such as percentage changes and calculating interest are now included in the national curriculum. Within their citizenship classes, pupils are learning how public money is spent as well as how to manage their own money and approach some of the financial planning decisions they often need to make in later life.
Parents also have an important role to play in influencing their children’s attitudes to personal finances. Letting your child see you make responsible financial decisions and helping them to appreciate the difficult skill of ‘delayed gratification’ is invaluable in a consumer society that encourages us to fritter away cash. Kids can also learn practical lessons in managing money if they receive pocket money or rewards for helping around the house. A regular set amount soon teaches your child lessons about how to budget and that money is not an unlimited resource!
When your kids get their first job, it’s a great time to talk to them about saving, whether for a set goal or just to have some money put away for a rainy day. Understanding the benefits of saving in an ISA and the new Help to Buy ISA to help first-time buyers save for a deposit. Teenagers are known to be influenced by their parents’ attitude to personal finance, so setting a good example and highlighting the dangers of financial mismanagement are lessons that they will (hopefully) listen to!
If you or your teenagers want to find out more about financial planning, contact AYP Financial Planning on 01434 607808 or by email at email@example.com .