Here’s why you should teach your children how to manage their money this summer.
We know it can be a bit of a hard-sell to your child. Getting them to learn when they’re off school isn’t likely something they’ll be looking forward to. Telling them they might need to save up the money that’s burning a hole in their pocket might not go down well. There are, however, ways that you can make budgeting fun, challenging and rewarding.
Good money habits start early. That’s why we offer The Young Saver, a savings account designed to help young people build healthy relationships with money from an early age. Here we explore some of the ways you can help your children learn the value of money, build good saving habits and make it fun and rewarding for the whole family.
Why teach young people about money?
Learning how to save, spend wisely, and understand the value of money can set your children up for a lifetime of good financial choices. A 2019 survey found that fewer than half of UK children have learned about money – either at school or at home.
In an increasingly cashless age, research has shown that more than one in five children receive pocket-money through bank transfers. Similarly, much of their spending will happen via contactless payments or online purchases. It’s harder to develop saving habits the way we used to. It’s not as simple as hiding the piggybank anymore.
There’s lots of help and support at hand to make sure your children can keep their money under control with some support and supervision from you. There are measures you can put in place, pocket-money apps and ways of making savings more fun for young people. Plus, when they start saving early, they’re more likely to develop responsible habits around money later in life.
Make money lessons fun
The school holidays are just around the corner. Believe it or not, it’s a great chance for your children to keep learning! As they spend more time at home, the summer break is the perfect opportunity for you to share one of life’s most valuable lessons: how to manage money. Here’s a few ways you can do it,
1. Set budgets for a day out
Let your children plan a day out in the summer holidays and set them a budget to manage. Of course, they will need some help deciding when to spend and when to save, but this will help them understand the value of money and prioritising spending. Can they afford to get everyone an ice cream at the park, or should they save up and put that money towards cinema tickets later?
It’s important to help young people understand the consequences of their decisions while making sure the activity is fun and enjoyable for the whole family.
2. Start a savings challenge
Encourage your children to set a summer savings goal, perhaps towards a new toy, book or game. There are lots of ways you can help them track their progress using a savings chart or app. Challenges like these gamify the exercise. It will help your children learn important lessons about setting realistic goals and having the patience and commitment to meet them.
You can break the challenge down into smaller targets with the rewards along the way to keep them focused and engaged. Seeing their money grow can be incredibly rewarding and completing a challenge makes them feel rightly proud of their achievement!
3. Open a Young Saver Account
Opening a savings account gives children a sense of ownership of their money. It helps them feel more ‘grown up’ and responsible. Your child can make deposits, track their balance and feel proud of their progress.
A GMB Credit Union Young Saver Account is an easy way for you to put some money aside for the children and kick start some good financial habits that will stand them in good stead for the future. Teach your child the importance of saving and enjoy watching them grow into financially savvy adults.
Benefits of a Young Saver Account
You can open a Young Saver Account for your children with as little as £5.00 deposit – it’s super easy to do. Make one off deposits, weekly or monthly direct debits, or both – safe in the knowledge that they are protected by the Financial Compensation Scheme (FSCS).
Young Saver Account benefits don’t stop there:
- Seamlessly manage saving for your child’s future with a linked adult account
- Understanding money matters benefits children throughout their lives
- Young Savers will receive a £10 bonus on their birthday until they are 17
- Young Savers enjoy the benefits of an annual dividend, further boosting their savings
Set your children on the path to a lifetime of good financial choices
It’s never too early to start building strong financial foundations. By introducing your child to money management now, you’re giving them tools they’ll use for the rest of their life.
Apply for a Young Saver Account today for your child. It’s fast, simple and you can do it all on our website. GMB Credit Union is more than just a financial institution. We’re a community of members who help each other. Join the community and build a more secure future for your loved ones.