Five ways to teach children about money this Half Term

Half Term is nearly here and kids across the UK are looking forward to a week full of fun! But before you set about planning expensive activities to entertain, why not consider spending some time teaching your kids about money?

It doesn’t have to be boring or pricey, in fact, research shows children are most likely to learn about money when they’re having fun with their parents.

So, here’s some top tips from Gimi ,  a free pocket money app and chores manager, to get you started:

Plan an activity together.

Set a budget with your children. It can be as big or small as you decide. Discuss how you’d like to use the money and what you can afford to do with it. This is the perfect time to do some research together. When you’ve completed your activity, save all the receipts
nd let your kids evaluate whether you managed to stay within the original budget. Encouraging children to make decisions about a specific amount of money is a great way of building budgeting skills.

Arrange a ‘clear-out’ day.

Make everyone responsible for clearing out items that they don’t use anymore. When you’ve all done this, sell them online or give them away to charity. Try to estimate how much you paid for the items to begin with, and get your children to compare that with what
you sold it for.  A twist on this could be to getting your kids to clear the fridge – evaluating what you used and what you’re throwing away.  These are great ways to get your children reflecting on their purchases and helps them to learn to be mindful about money in the future.

Take responsibility for meal planning.

Write a shopping list together for the week. Start listing everything you can think of. Divide the items into ‘needs’ and ‘wants’ then prioritise them from what’s most important to what’s least important. Discuss which items you can skip and then go shopping together.  This is a great way for children to learn household responsibilities as well as the difference between needs and wants.

Start saving for summer.

Even though summer may seem far away, now is the time for children to start saving if there’s something special they want to do or buy. Help your child set a specific goal and research the price of it. How much will they need to save each week or month to afford it? Make a savings plan together, what can the child do to earn extra money? What purchases can you cut back on or eliminate?  Learning to save during childhood makes it easier to save as an adult.

Build entrepreneurial skills.

If your child is interested in earning some extra money during the time off, why not look into starting a mini business together. Do many of your neighbours have dogs? Maybe you can offer to take the dogs for a walk?

Or, if you’re not comfortable in having your child doing work outside the home, give him or her some extra responsibilities at home during the week. Ask them to spot ‘problems’ around the house – are the plants looking sad or is the recycling bin piling up? Then
ask them to suggest solutions to these problems – watering plants or taking the recycling out. Make sure you negotiate the reward.

This is a great way to inspire your child to think of their own earning potential.