Four Steps towards Raising Your Children to Be Smart With Money

Children who grow up without learning how to manage money properly are likely to become adults who go heavily into debt and possibly struggle financially all their life. If that is not the future you want for your children, there are 4 action steps you could take:

Allow your children to earn money

As soon as your children are old enough to do some chores around the house, you could reward them financially for completed jobs at home.
It is important that you give out money only when they finish their jobs. Don’t hand out money for chores that aren’t completed.

When your children are older, you could also encourage them to do part time jobs around the neighbourhood.

Encourage savings

Make sure your children regularly save a percentage of their earning (or pocket money) .Opening a saving account for them is a great way to do that. Chesterfield and North East Derbyshire Credit Union has a Junior Saver Scheme for children up to 16 years of age.

For young children, you could also consider setting up a piggy bank and try to ensure that they let the amount build for a while and aren’t tempted to “borrow” from it too often.

This will teach them basic money management and grow up to be responsible adults.

Help your children budget their money

Now that your children have earned money and set aside some saving, the next step is to help them budget. There will be things they want to spend money on such as a new game, a new dress etc. Help them work out how much they need and how long they will need to save. Then there is a question of prioritizing. Let them make tough decisions - if they want to buy a game, they can’t also buy new trainers if they don’t have enough money in their accounts.

Don’t hand out money to buy both. Let them choose. This will help them learn about priority and self-discipline.

Let them take responsibility

If your children make a impulse buy and spend all their savings, let them bear the consequences. However much they moan and implore you to buy them that new game or new dress, don’t give in.

When they grow up, who will pick up the pieces if they spend the whole month’s salary unwisely?

Helping children manage their money early will give them an advantage in life. Don’t wait. Prepare them throughout the early years.

Sign them up for Chesterfield Credit Union Junior Saver Scheme.

We currently have a growing number of junior members. They don’t need to pay any membership fee. They can be any age from birth to 16 years. We currently run schemes in 19 local schools where our volunteers visit weekly/fortnightly to collect savings from the children. Children are led in discussions around banks and savings and asked to suggest ways to ensure that they are able to afford the things that are important to them now, or that will be in the future.

Why not help your children build a brighter future?

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Derbyshire County Council Chesterfield Borough Council North East Derbyshire District Council Rykneld Homes Derbyshire Community Foundation Derby City Primary Care Trust

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