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Happy New Year!!! I hope that you guys had an amazing holiday and are ready to start the year off on an amazing level. One way to you can help ring in the New Year the right way is to look at finances. Teaching your kids about finances is very important for their futures. My December subscriber exclusive, which is now available to everyone, teaches your kids just that. This exclusive comes from the Yorkshire Mum of 4 Gem.

My name is Gem, I am a mum of 4 and I have a great passion for personal finance. I love savings and always like to maximize our money so here are a few important money management lessons for your children.

1) Introduce Money to Your Child 

Explain the different coins and notes. Tell them where money comes from so you are educating them on how to get money when they are older. When you are younger they have games such as Monopoly or Payday that do a good job of learning about buying a selling.  Another teaching idea would be to get your child a till so they can play shops, they can even label toys in their room and play role play games to get them used to managing money and change. You can even send them into shops to buy things and make sure they get in a habit of working out the change so they know they will receive some.

2) Savings Account 

Take your child to the bank so they can see how much they have in the bank, whenever you put money in you can take them to the counter to show them how much money has been put in and what their balance is now. You can also explain to them interest. For example, if the child bank account has 3% savings and they have $1000 essentially they should earn $30 per year. Explain why savings is important with your child so they understand the value of saving. For example, if they want to buy a toy that is $70 then they need to understand it will take a while to save. Explaining to older children that at minimum wage it would take a full day to earn the $70 to pay for that toy as it puts it into perspective for them and then they can realize how hard people work and that money doesn’t grow on trees.

3) Spending Money

You need to give the power to your children by giving them money and taking them to a store, a car boot sale or craft fair to show them and teach them the importance of budgeting. When they pick an item up ask them if they will use it, if they need it and if they think they will use it for a while so that it has value. I am a huge fan of Martin Lewis and now always ask myself whether I definitely need it, if I will use it and can I get it cheaper elsewhere, this is also a good lesson for the kids when they are a bit older and they realize they cannot afford the higher brands clothing they might want to purchase.

4) Credit 

Inform your child as much as you can about credit. We had a conversation with our ten year old recently and we used a whiteboard to explain how credit works but essentially he borrowed $100 and we asked him how much he wanted to pay off the first month and he said $10 so we said because you have to pay 18.9% they will add that much interest divided by 12 to the outstanding balance of $90 so the next month you owe more money, essentially he took him 18 months to pay back what he owed and he ended up paying about $60 interest which taught him an important lesson about being able to pay for what you buy because the months after that while you are paying back interest you will have less budget available to spend. Sometimes credit is essential like when you are buying a house, not many people can afford houses without a mortgage but when the time comes we will chat to the kids about interest rates and the importance of overpaying your mortgage if you can to slash the interest.

5) Budgets 

Budgeting while not so important when you are young is essential when your an adult and a good skill to learn for children growing up. I remember when I was young and we had $100 off grandma to spend at Christmas and this is a good lesson for the kids now. They are given a budget to spend for Christmas and they are given some catalogs and a wish list so they write on the list what they want but if it is over budget they cannot have it.  This teaches kids that there isn’t an infinite amount of money and when you are older you have to make sacrifices if you cannot afford something.

Read more from me at www.yorkshiremumof4.com – I post about money, lifestyle, and parenting.

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New Five Things: 5 Things to do to Encourage Self-Love Among Kids 

This months subscriber Exclusive is from Brianna Nicole from Simply Briee. She has brought my subscribers an amazing exclusive for January about teaching your kids self-love. Self-love is a hard topic at times but it is so important that our kids learn how to do this for their own well-being and mental health Brianna brings us some great tips on how to approach this topic.

About Simply Briee

My name is Brianna Nicole, the blogger behind Simply Briee, a lifestyle and travel hack blog. This month, I give tips on how parents can encourage self-love among their child. It’s a touchy subject, but a topic that can have a long-lasting positive impact on a child’s life. Want to read more from Simply Briee visit simplybriee.com. 

If you want access to this amazing subscriber exclusive to subscribe by using the form below this post. Current Subscribers, you will be receiving this amazing article shortly.

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