Money management is very important, we learn from our parents behaviours and if we constantly think money grows on trees then we will never learn and think it is ok to spend spend spend.
As a child I was always taught by my Grandad to spend half and save half. I think he first opened a post office savings account for me when I was born and it started by saving a £1 a week, when I was old enough to understand what money was the amount of pocket money I got went up to £1.50, I again had to save £1 and I got 50p to spend on some sweeties.
This amount may not seem a lot of money but what it was teaching me was responsibility, learning that when you receive money you don’t get to spend it all and saving part of it will help you in the future. In a way it was like having a job where the part I was saving was my bills and there rest was play money. Or if you really want something then you need to save for it and buy what you want rather getting into debt for it.
My grandads theory which I still remember to this day – was its always to good to have money to one side in case you need to repair your car, go on holiday or get yourself out of diffilculty. Baring in mind I was a child when he was telling me this, so I probably never really understood what he was saying – but for it to stick in my mind he must have really drilled this into me.
Every few months once my little tin was full he used to take me to the post office with my savings book and make me deposit the money into the account myself, again teaching me to control my own money.
As I got a bit older the amount I got went up but stopped at £5, which then I had to save £2 and keep £3. The amount I was getting never made a difference it was how I was managing the money.
When I was 18 I got access to this account where I could do whatever I liked with it. That was the mistake, Yes I was taught lessons about money with my grandad but I was 18, still a child, wanting to buy nice clothes and go out on the drink. When I was 21 I said I wished I was giving it then as I was more grown up and I had bought my first house so that money that was saved would have been put to good use. It wasn’t all wasted though, I did use some of it to teach myself to drive and it got me through my test, but maybe a bit too young to receive the amount of money I received.
My Grandad still does this with my son but the only difference is when it reaches a certain amount he puts it straight into his bank account that we have for him, so its not teaching him the same lessons that I did, But I will do my very best to teach my son the importance about saving.
We as parents cant afford to buy our kids a car when they pass there test and all the other luxuries that kids want these days so for me teaching kids about money is important. Schools don’t do it so we need to make sure that we are educating our children.
Do you think this is a good idea?
Would you consider doing this with your children?