I don’t think that schools do enough to educate our children about money or if they do, they don’t start it young enough in my eyes because neither of my children have been taught much about money at school so far and they’re eleven and eight.
We’ve had the numeracy based questions for homework that ask thing like ‘If I bought 3 apples for 10p each how much change would I have from 50p’ but they haven’t learned anything about money in the real world which I would have hoped (but not expected) would have been covered at some point – at least for Miss Frugal’s year six class.
Children need to know how much things cost, how to value money and more importantly, how to manage their own money and the earlier they learn these things, the easier it is to understand them. Without an understanding of these fundamental things, how are they going to be able to make sensible financial decisions when the time comes?
Don’t get me wrong, I’m not expecting them to tell me how the Bank of England base rate is calculated or anything like that but I do think that they should be starting the basics of a financial education at this age and seeing as they’re not doing anything at school, I’m going to be doing it at home with them.
To start with, I thought I’d get a bit of an idea about what they already know about finance by asking them a few questions and I must say, I’m a bit surprised with some of their answers:
How much money do Mam and Dad earn each month?
Miss Frugal – £3000 (I wish!).
Master Frugal – £100 between you.
What’s a mortgage and how much is ours a month?
Miss Frugal – Where you pay for a house but no idea what ours costs.
Master Frugal – Is it something you pay for to do with the house?
What’s a credit card?
Miss Frugal -The card you pay for things with – I don’t know if it’s real money though.
Master Frugal – A thing that has money on it.
What do banks do?
Miss Frugal – They store money.
Master Frugal – You pay them money to get a loan out.
Name five things that we pay for each month out of our wages?
Miss Frugal -Days out, water, electricity, house, car insurance.
Master Frugal – Electric, heating, water, TV and the car.
Do you know what insurance is?
Miss Frugal – Where you pay for things in case something happens.
Master Frugal – *blank look*
Give me one moneysaving tip?
Miss Frugal – Don’t waste money.
Master Frugal -Don’t buy much stuff.
What would you do if I gave you £100?
Miss Frugal – Spend it on a nice day out for us all.
Master Frugal – I’d go to Toys R Us.
Interesting 😉
Starting next Friday, I’ll be posting ideas every week on how to teach your children the value of money and I hope you’ll follow along with me.
Only come accross your blog today but after having a look around and reading some posts, i have to say i love it.
Ive noted down a few tips and notes and advice on pocket money.
Thank you. 🙂
This is a great idea. My daughter isn't too good at maths, and has no clue about the value of money, or numbers really. I'll ask her these questions too. Looking forward to the Friday updates.
The school I work in runs a bank. Children pay money in ( from as little as 20p) they can then save . Parents can also save and as it is through a real bank have the option to take out small loans. This is to deter them from going to loan sharks or payday loans.
I agree! Super important to teach kids the value of money x
I really like this. Years ago I had a client in debt management and it was so clear that so much could be done to help future generations by teaching them about money early. Looking forward to reading more.
Fab post, yes it is very important and something we do with our children as well. Mich x
I think this is really important, looking forward to your advice.
Great idea. I have started doing a similar thing with my little people. When I asked them what they would do if they only had £1 and the thing they wanted was £2 Bella replied that she would make some fake money! Still a long way to go with them I think!
What a great idea! Despite your worries, though, they do sound reasonably savvy to me – their tips on how to save money seemed spot-on. I'll look forward to seeing future posts!
What a fantastic idea – may have to ask the kids those questions – even the teens thick money grows on trees!
oh this is so interesting, it would be interesting to ask the same Q's after you've done your magic on them 😉
That is really interesting! My son has no idea of the value of anything although we are trying to teach him more as he gets older
I think it would be great if schools brought in about managing a budget, how much things cost including the cost of ingredients vs ready meals etc.
Love this. Amazing what kids think about money and more amazing what we can teach them. x
So important to teach kids about money from an early age!
Great questions and now I'm really interested to see what my children would say if I asked them the same.
Aw they seem pretty clued up on what costs money and the value of it which is great…my children are younger and I definitely want to make sure they know too and we do talk to them about the cost of things…sometimes too much – today we went to somewhere with a fountain you could throw money into and I gave them each a 1p to throw in and my oldest refused to do it as he thought it was a waste of money!!!
Ha! Love the "i'd go to toys r us" answer 😉 x
I love this idea, my two are only 5 and were given £2 by a relative today but they have no idea how much it is or what they can buy with it. It will be interesting to take them out to spend it and see how they choose to.
Great interview too
When I got to about 13 my mum gave me the family allowance plus I had a Saturaday job but had to buy my own clothes. It certainly help make me realize how much things cost and the concept of saving for something rather than buying it straight away. I did make a lot of my own clothes back then which probably helped.
I LOVE this! Coincidentally I need to write a very similar post after an event I attended before Christmas where we discussed exactly this. If you don't mind, I might interview my kids in a similar vein to you and link back to your series of tips x
interesting idea! I have just started teaching my 5 year old quite a bit about money but he doesnt know all of these. i might ask him them and see what he says!
Cool – mine are just starting to pick up change from around the house and save it – would be really interesting to ask them those questions!
Fantastic! I can’t wait for ideas.
This seems like a great idea. I definitely want to make sure that my daughter understands money. I wasn't taught anything about managing finances until 6th form!