In support of Financial Capability Week, which aims to raise awareness of the importance of financial capability, we thought we’d post something to inspire you to get your children on the road to being financially capable themselves. And what better way than getting them involved in some family budgeting!
Getting your children involved in the family budgeting helps you do two things. It encourages them to understand that the costs the Bank of Mum and Dad incur on a daily basis go beyond covering their candy and pocket money. It also saves you cash while teaching them an invaluable lesson in how to become a savvy spender – not just on whether a lego purchase is really worth it, but in everything they do in the future: from negotiating a mobile phone contract to getting car insurance.
So – how do you get them involved?
Make them family budget busters
Rising costs in gas and electricity bills has been receiving plenty of press. There seem to be more broadband and telephone deals on the market than ever before and thanks to the explosion of comparison sites and advice columns, there is plenty of advice out there. However, if you’re like me and have your bills on direct debit, sitting down to review your current costs and finding a better one is something easily put off until the following week.
Get your kids involved. They can help you check the comparison sites. And writing up the best ones on a board can be great fun and rewarding if you offer them a share in the money won back!
The supermarket is a great place to get your kids thinking about the value of things.
I’m a particular fan of checking the labels in store to see what the cost by weight and size is. And hunting out good 2 for 1 deals, or scouting out reduced items is a great motivator too. Making it a challenge will make it fun for your children (and a distraction from simply picking up e-number filled sweet packs and trying to smuggle them into the trolley). You can also incentivise them with a reward chosen on your way to the checkout.
If you want to save a bit of cash online and visualise the experience for your kids, sites like Mysupermarket.com manage price comparison calculators.
Are there things that you might pay someone else to do at the moment? Do you need to get all your windows washed by someone else? Or can you get your kids to tackle the ground floor ones? If you wish you had time to put your feet up rather than cleaning the bathroom, or really want to do a job you aren’t usually able to get done, get your children involved. Offer to pay them for those jobs on an agreed rate. Make sure you are firm with the amount and stick to it. They will learn what it takes to run a house and the satisfaction of earning some cash.
Don’t feel you need to reward household jobs directly with pocket money. Many parents on RoosterMoney use Stars or a reward chart to create a points system which they then convert into pocket money or a different reward.
Got any ideas or suggestions for what we cover next? Let us know at email@example.com and it might get featured in a future blog!