Anyone who has used this forum for even a short amount of time will know the vast raft of responsibilities that come with being a parent. Every day we are presented with situations where knowledge must be imparted for the benefit of our kids. Whether it's looking both ways before crossing the street or knowing not to talk to strangers, those first ten years of any child's life are where habits and lessons will be ingrained for a lifetime.

Many of us are quick to overlook the importance of teaching children financial sense in those vital first few years, and it's easy to see why. Kids don't have to deal with money themselves so finding situations where you can pass on valuable knowledge is a worthwhile exercise.

Money Games

A great place for any parent to start when it comes to bringing the idea of money into a child’s life is through play. There are all kinds of games you can play with your kids that have a money element to them and are ideal for introducing the idea of spending and saving. You have an excellent opportunity to demonstrate the basics of exchanging money for goods and services. 

Involving them in Shopping

If you want to develop these money games in a more practical way, try involving the kids with your weekly trip to go food shopping. Most of us will have to take the kids with us to the supermarket for food shopping anyway, so you might as well take advantage of the fact and turn it into a chance to learn.

Show your kids how all the different food items add up, and what constitutes an extravagant purchase. Teaching them sensible spending at this early age is vital, and it’s great to show them how it works in the real world.

The Power of Earning

Once your children reach a certain age, you might be in a position to teach some lessons on working for money and the value of paid work. All of us will have earned pocket money at some point, whether it was from parents or whoever else when we were young. 

The experience teaches us the real value of working for money. You can do the same for your kids, by giving them small tasks around the house and ingraining the work/reward mentality will help them to develop an ethic that will hopefully inform their own professional lives.

Saving for the Long Term

Perhaps the most important financial lesson you can teach your kids relates to the value of saving money. It’s no secret that our kids are likely to be under more financial pressure with everything that comes with an ageing population, and the need to save for a pension early. Showing your kids the value of a Junior ISA, and how saving today to spend tomorrow is a great thing to teach them early on. Especially if you can encourage them to add to their savings with any pocket money they earn themselves.