8 tips for teaching kids about money

The school holidays can be a demanding time for the household finances. But they can also be a good time to start teaching your kids the principles and skills they will need to manage their own money in the future.

Try these tips to introduce your children to basic money management.

1. Encourage your kids to save for things they want
   Try to make it fun – consider incentives and rewards, but do what you feel comfortable with and can afford.
2. Use everyday encounters to help kids learn about money
   Make informal money lessons from visiting a money machine, or opening bank statements or bills.
3. Explain interest
   Kids need to know that you can earn interest by saving, and that you pay interest when you borrow.
4. Be aware of money personalities
   Encourage your kids to be aware of the relationship they are developing with money – are they more inclined to spend or save? Different personalities may require different approaches. Try Sorted's Money Personality Profilers – there’s one for kids and one for adults.
5. Talk about money with your kids
   It's from discussions about subjects like “How much money do you make?”, or “Why can’t I have one?”, that children learn their most lasting lessons about the value – and the values – of money.
6. Be consistent
   If you’ve made a rule or an agreement about money with your kids - be decisive and stick to it!
7. Keep records
   Encourage your kids to keep written records of income and expenditure to get into the habit of account-keeping. Show them yours.
8. Find out what's happening at school
   Schools also have a key role to play in encouraging financial awareness. In fact, the Ministry of Education has recently integrated financial capability into the school curriculum.

Sorted has a special section called Kids & Money, which includes nine fun, interactive online games aimed at children aged from five to 12.

So if your kids are at a loose end these school holidays, why not use the time to help them learn money management skills – and have a bit of fun along the way.