8 rules for Sorted parents

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. Don’t ever assume kids will pick up the most basic facts on their own.

   Endless cash at money machines

   To prevent children thinking automatic teller machines are an unlimited source of cash, show them withdrawals on your statement.

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.

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.

   When money’s gone, it’s gone

   If your child’s spent all their money but still crave an expensive toy, don’t buy it for them. Children should understand that, when money is gone, it’s gone.

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.

   Banking accounts

   If you open a bank account for your child, make sure you choose one that has a passbook so they can see a clear record of deposits and withdrawals.

8. Find out what's happening at school.

   Schools also have a key role to play in encouraging financial awareness.

You can get a clear understanding of your kid's money personality by doing the Kids' Money Personality Profiler