TEACH YOUR CHILDREN HOW TO HANDLE MONEY

Children aged 3 to 5 are old enough to start understanding how to keep track of their monthly pocket money. Why not use a jar or piggybank to serve as a visual reminder of how their savings are going? You could also set a savings goal – such as the price of an inexpensive toy – so that your child will have something to save for.

Children between 6 and 10 can be encouraged to think about their buying habits. You can also give them the freedom to buy some items when you’re at the supermarket, explaining that you have a set amount of money to work with, to help them begin to learn about finances and budgeting.

For children aged 11 to 13 the value of their savings target can be increased. Try calculating with your child how much they could save in a few months – or even years – and think of a big ticket item that your child could think of saving for.

From 14 to 18, you could start having more serious conversations about how your child could earn money with a job, and the importance of saving money. It may be the time that your child goes on holiday without you for the first time, which of course requires financial discipline, both in saving for the holiday and also when they are away.