your Child to stay out of Debt
It's never too early to teach your children about the importance of
money. Teaching them to manage their money well at an early age could
help them to start making sensible decisions early on - and get them
into good financial habits further down the line. Earlier this year, the
All Party Parliamentary Group (APPG) on Financial Education for Young
People launched its 'Financial Education and the Curriculum' campaign -
promoting compulsory teaching about money in UK schools.
Given the current economic climate, with rising
living costs increasing the likelihood of people ending up in debt, it's
more important than ever to teach your child the best ways of keeping in
control of their money and making good financial decisions. If you're
looking for advice on dealing with debt, the
Debt Advisory Centre could be a good starting
Here are some practical ways to help your child stay out of debt in
The importance of saving
One effective means of staying debt-free - and increasing your financial
security - is to have a savings pot. Whether you're saving for a big
expense or simply setting money aside for any unexpected costs (such as
if you need to repair your car or cover the cost of vet's bills),
savings could offer a dependable lifeline.
From the humble piggy bank when they're little more than toddlers to
savings accounts once they're a bit older, teaching your child about
saving should help them to build a solid financial foundation for the
Teach them the value of letting money grow over time, and if they want
that brand-new pair of trainers or games console, encourage them to save
up for it - so they can appreciate getting something they've really
Teach the difference between 'wants' and 'needs'
Any parent will be familiar with the phrase 'I want!' - all too often
accompanied by stamping feet and a tantrum! However, it's important to
teach your kids the difference between things they want (whether it's a
toy or packet of sweets) and things they really need (stationery, a new
pair of school shoes, etc.).
Of course, this doesn't mean your child can't have a treat from time to
time, but it's important to teach them the value of money and what it
can buy. Particularly as your kids get older and have to start budgeting
more seriously, understanding the difference between essential costs and
'luxuries' will become vital to managing their money well.
Earning money through hard work
When they're young, many kids think money grows on trees, or that £10
notes magically appear from those 'holes in the wall' whenever you need
any. Unfortunately, of course, no such scenario really exists - but the
sooner you can teach your kids that money isn't just handed out, but has
to be earned through hard work, the better.
Give your kids an allowance for helping out with the housework - such as
washing the dishes or mowing the lawn. Knowing how to work to earn money
can really encourage your kids to make sensible financial decisions in