Much of what we learn in childhood can stand us in good stead for when we set out on our own in adulthood.
Maybe your parents involved you in household chores such as cooking and cleaning, so you were confident with both when you moved out and lived on your own.
But did they ever speak to you about the household finances?
And if they had done, would you feel more comfortable managing your money now, and less daunted by the idea of making financial decisions?
With that in mind, speaking to your children and imparting your knowledge and experience is really important, as you’ll surely want them to grow up knowing how to handle their finances.
Simply getting the children involved in everyday tasks such as household budgeting or grocery shopping can help them get to grips with basic financial concepts and understand from an early age what drives your decisions.
At the same time, they may pick up good habits for the future, and consequently feel more comfortable both handling and talking about money.
Sadly, many children don’t get any significant financial education, either from their parents or in the classroom.
According to a poll by the Money and Pensions Service (MaPS), just 47 per cent of seven- to seventeen-year-olds have been given meaningful financial education at home or school.
That in turn means that millions of young people are missing out on much-needed guidance and support, which could open them up to huge problems in the future, or at least mean they have no idea how to make their money work hard for them.
One particularly interesting finding in the MaPS study was that financial education was more common in higher income households and in households where families are able to keep up with bills.
That’s a concern, as it suggests that the wealth gap that currently exists in society may be entrenched for at least another generation, as children from families at the lower end of the income scale simply don’t know how to get out of this cycle.
This doesn’t have to be the case if people are educated about basics such as household budgeting, using a bank account and putting money into a pension.
If you’re not sure about any element of your finances, remember that help is out there, from free services such as MoneyHelper, Pension Wise and Citizens Advice, to professional, regulated financial planners.
We’re here to help you make the right decisions, so you’re in a much stronger position to achieve your financial and lifestyle goals, and set a good example to your children at the same time.
If you have any questions about managing your money, please don’t hesitate to get in touch with us.
