Great 'Teach kids to save money' Hunt

Plumjam

My son has just started at secondary school and we have agreed a £100 per month allowance for him. The allowance covers bus fares, school lunches, usual pocket money and clothes. We buy school uniform. If he walks to and/or from school (or cadges a lift from someone), he keeps the bus fare. If he makes his own packed lunch, he keeps his lunch money (I make sure there are lunch things in the house, but won't make it for him). He often walks to and from school, treats himself to a panini at break time once a week and has school lunch on the day he has PE (as he has to carry his PE kit around with him all day and having school lunch means not carrying lunch box around as well - very sensible). He has learnt very quickly that he can save a lot of money to do with as he likes (he likes to buy people nice birthday and Christmas presents which I think is lovely). He is also learning the value of money and how to make the most of it.
If I had to give him bus fare and lunch money each day, I would need to give him about £5 a day. £100 per month works out less than that. He's happy with the arrangement and we all gain.

declan_w

Errata wrote: »

Sorry - that's complete twaddle.

It's actually 90% - Five year Natwest study involving 10,000 people.

Obviously it is not a dead on stat but financial and enterprise education are not part of the national curriculum - what conclusion on financial literacy would you draw?

gfaulks

I was looking to find some advice about children's savings accounts as I've recently realised what an appalling rate of return we're getting for ours. Got to reading all these posts from such caring parents about how they help their children learn the value of money and pocket money etc and just wanted to thank you all for taking the time and trouble to write. We have 3 children aged 5, 7 and 9 and have always tried to help them learn the value of things (ie if you break daddy's laptop that's 4 years pocket money at £1 a week!) and they have to save up for toys they want which makes them see how expensive they are.
They love receiving a cheque or gift voucher for birthdays/Christmas as they realise they can go in a shop and choose themselves what they would like to spend it on.
They have to do a few chores without any payment - like others have said, we all live here and therefore all have to help keep it tidy and clean. However if they do something extra they get a bit more... they also loose part of their pocket money if they are extra naughty! :j

Errata

declan_w wrote: »

It's actually 90% - Five year Natwest study involving 10,000 people.

Obviously it is not a dead on stat but financial and enterprise education are not part of the national curriculum - what conclusion on financial literacy would you draw?

It's the parents responsibility to teach their children about finance. I suspect the vast majority do, which is why my conclusion that 91% of adults have received no financial education is twaddle.

System

As my DS announced (aged 5) to neighbour that he was "going to open the house and garden to the public so mum can pay the mortgage" I've not had any problem teaching him the value of money lol. He used to sell plants, has done gardening for people, sold on ebay, had paper rounds, delivered leaflets, repaired Pcs etc. Maybe my being a single parent ( and broke) he picked up from me early on that treats were not easily come by and money had to be stretched...he's always saved rather than spent so when he has used his money he's made sure first that he really wants the item.