Love it or hate it, money is an essential part of our lives; we can’t live without it, so we need to understand it (and the earlier the better)
Being money-savvy or ‘financially aware’ is one of the most important life skills we can possess; no other skill better guarantees personal wellbeing and freedom.
Many teens in the UK, however, enter their adult lives with little or no basic financial literacy. It’s just assumed that children will learn about money — as we did — along the way. But this means that many children will have to learn about money the hard way, and often too late.
Observing how parents manage money isn’t always the best way for children to learn about money.
Family situations and dynamics vary considerably. Financially ‘wealthy’’ parents may use money as a means to control or placate their children. Their children may grow up believing that money is easily available and can be used to influence others.
Parents on a modest or low income, on the other hand, may unintentionally focus on the hardships of not having limitless funds. Their children may develop a fear of ‘not having enough’ and carry that fear with them into adult life.
These examples at opposite ends of the wealth spectrum, share one thing in common, a negative relationship with money.
Too many parents fail to consider the importance of raising their child’s financial awareness. Children need to understand about relationships with money so in turn they can form their individual relationship with money. Many parents, however, shy away from teaching their children about money in an objective way. But raising children’s financial awareness, particularly if done around adolescence, can make all the difference to their futures.
Raising children’s financial awareness can help them to avoid money struggles later in life by arming them with the knowledge and tools they need to appreciate and understand the difference between their wants and needs.
Understanding the importance of budgeting and recognising the value of saving for the pleasurable things (but also the rainy days), gives children a genunine grasp of money, helping them to take charge of their financial future. It is not terribly hard to get teenagers interested in making and managing money either.
Our financial awareness sessions are designed specifically for 9 to 14-year-olds and take the burden off parents who may not be comfortable with having ‘the money talk’.
Find out more about our summer residential camps this August
- Chartered Institute of Personnel and Development (2017). From ‘inadequate’ to ‘outstanding’: making the UK’s skills system world class. Policy Report. London: CIPD.
- Little, S. (2017). One in five Brits have no savings. [online] The Money Pages. Available at: http://www.themoneypages.com/saving-banking/one-in-five-brits-have-no-savings/ [Accessed 18 Apr. 2017]