Yesterday we launched Osper Savings Goals, helping young people getting to grips with how to best save their pennies. But what’s the role of parents? We recently commissioned research which shows that parents struggle talking all things money with their kids, and particularly when it comes to savings. In fact, parents are more than twice as likely to discuss sex with their children than they are savings. Discussing the birds and the bees is important enough, but as is building good money habits from a young age.
We think parents struggle because of pressure, and because talking about money comes across as a huge, monstrous issue that has no real beginning – or end, for that matter. It doesn’t have to be like that, though. We had a chat with financial expert Jasmine Birtles, founder of MoneyMagpie.com, to see what her top pieces of advice are for parents who aren’t sure how to tackle the subject of money with their kids. This is what she said:
Set an achievable goal – kick off with a small goal that can be achieved without too much effort so that they get a taste of how good it is to meet a target.
Let them spend what they have saved – so that they experience the joy of their own achievement.
Track progress together – show your interest, keep checking in on their progress and celebrate when goals are reached.
Making mistakes is OK – let them make small mistakes. It might seem scary, but we often learn best from our mistakes.
Set up an allowance – a regular source of income will help to put spending versus saving into perspective.
Help them to learn want versus need – help them set priorities for themselves and work out what they may need to sacrifice in order to achieve their most important goals.
Lead by example – show them how you also need to save for the things you want, and that it’s not just an exercise for them on their own.
Be honest – if they ask a financial question, try to answer it honestly or say you don’t know rather than lying. If you don’t know, get them to join you in researching the answer so that they learn how to find out things for themselves.
Is there anything else that should be on the list that isn’t already? Add your tips and tricks in the comments section below for the chance to win a £10 top-up on your child’s Osper card.