teaching daughter the value of money

primaryteacher

As a child (even as young as 5) I was given a very modest amount of pocket money each week by my parents - the deal was that my sister and I had to save the greater part of it (in our own savings tins) which would then be paid into our own Post Office account when we had a amassed a few pounds.
By the time I reached £1 per week pocket money, I think it was save 60p, spend 40p. It meant I had enough for some small item - or could 'save' my spendings if going on holiday and wanted a little more to spend. But savings were 'untouchable'. By the time I was 18 I think I had about £600. Not much now ( we are going back a few years so was worth a little more) but priceless in what it taught me about the value of money. I don't have children of my own, but if I did I would DEFINITELY do the same thing. Yes, at times as a child I resented having to save my pocket money - it was supposed to be mine - but then every day we have to spend money on things we wish we didn't have to as an adult!

FBaby

I just wanted to add that teaching a child the value of money/savings/debts etc... is about teaching living skills and shouldn't be associated with what you can or can't afford. I seem any families who are well off who feel that this gives them the right to spoil their kids and save them the benefit of having to be concerned with money issues.

My parents were quite well off and never discussed money in front of me. I wasn't spoilt, but I was protected from money cnocerns. That resulted in me being completely clueless when I became independent at an early age. I wasn't too dumb, doing very well at school, yet looking back, I can't beleive that at 16, I could hardly grab the concept of the difference between £10K and £100K. I got myself into debts, the usual, then learnt the lesson hard!!!

My partner and I earn a good salary and could certainly spoil the kids, but I really want them to learn the skills before experiencing it! One trick is that I rarely pay for extras when we go out. It's amazing howthe lunch, the ice-cream, and the prospectus, and the little present, and the picture can mount up to ending up even more expensive than the cost of the event. My kids are used to us bringing in water and snacks with us, not having dinner there, bring entertainment on the train rather than buying at the station etc... They have long stopped expecting these expensive extras, they understand that by giving these up, there are more likely to be able to go out soon again.

I also teach them about special deals, how waiting a bit longer can mean getting the same things much cheaper. My 12DD wanted a blackberry like her friends, i told her she needed to wait until the prices went down. Last week, we got a better deal for half the price her friend pay. She was pleased with herself and it seems to almost have made up for the frustration of the wait!

I consider our finances very much like our health. It's not because you have it good that you shouldn't look after it.

SeduLOUs

My dad did it to me when I was little. When we went on a day out to Blackpool or similar, instead of listening to me whine all day about the millions of things I wanted they would give me £10 in the car on the way there. It was up to me whether to buy a toy, or spend it all on ice cream and sweets. I remember other 'mum's looking at me like I was some crazy child when I'd turn to my dad and say 'the toys are a bit expensive in here, can we look somewhere else?'

I got £2.50 pocket money a week, but only after my room was tidy and I'd hoovered the entire house. I could get another £1 by washing both of my parents' cars.

I think having my own money and paying myself actually helped me with basic maths aswell as feeling like a grown up so there's a lot of additional benefits.

It definately worked, but no system is perfect - I still learned the lesson about credit cards the hard way when I went to University. Mistakes will still be made down the line, but I got a lot of independence from it and have never asked my parents if I can borrow money since about age 17 when I got my first P/T job.

foxgloves

As your daughter is a little on the young side for a lecture about money issues, perhaps she could start to appreciate the value of money by being involved in some simple purchasing decisions. For instance, 'We've got enough money left this week for you to have this comic, or to buy an ice cream"......& not to cave in if the answer is 'A comic' later followed by a strop if the ice cream doesn't materialise as well. After all, all budgeting is based on such decisions.....if we are budgeting properly, we know that there is a set amount of money each month & that is what we have to live on.....if we spend more than that, we are heading for debt, if we spend the exact amount we are solvent, if we spend less, we can put a little away for emergencies or something special like a holiday or a trip out somewhere nice. Also, giving your daughter some coins to save in a moneybox (even 1p or 2p pieces) will give her a connection to the fact that saving for things is necessary & normal. The most important thing is not to give in to tears & whining.....later in life it's the deadly combination of wanting things NOW & credit cards that lead so many of us down the wrong path, financially. Good luck with however you decided to tackle it.