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Guide
to Loans
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Get the
kids saving from a young age and encourage financial
awareness:
- Establish a
savings account and plan for your child
Every child should have his or her own savings account,
where feasible, even if it is simply a lowly piggy bank.
Whether of not your child receives pocket money or has a
part-time job, get them to make a savings plan. Parents
could even encourage their child to donate a percentage
of their savings to charity, thus encouraging an
awareness of helping others. Get them to set long and
short-term savings goals, such as saving for school and
university as a long-term goal, and clothes, toys and
music for short-term goals.
- Hold a bill
paying night
This is an effective way to show your school-age
children where your money goes, in addition to spending
quality family time together.
- Assemble list of
monthly/weekly expenses and their amounts
- Write out the
expenses and their amounts on separate bits of paper
- Add up monthly
income and use pretend money
- Take the expense
slips and give them to your children
- Let your children
approach you and “collect their bill” one
expense at a time – this provides a superb visual
representation of how quickly income can disappear
- Create a family plan
and put it into action, post a reminder on the
fridge or some other obvious place – involving
them to think creatively about solutions as much as
possible
- Encourage them
to work
Even young children are capable of undertaking simple
tasks around the house and garden to earn money and save
for things they want.
Teenagers should be encouraged to get a job where
possible.
Working also helps children to understand that learning
comes at a cost and improves their self-esteem, allowing
them to take satisfaction from their efforts.
- Open a savings
account for your child
Teach them about deposits and withdrawals.
- Keep a family
savings fund
Save as a family for large expenses like holidays. Track
your success and achievement of goals with a chart and
set up a jar or box in which to keep the money.
Establish a family rule that money can only leave the
jar/box when all family members are present.
- Establish limits
on spending
Establish spending limits for items such as clothes and
entertainment, set expectations in terms of cost, but
always allow your child to make up their own mind if
they want something more expensive.
Encourage them to think about how they buy something,
such as maintaining an awareness of special offers,
discounts and sales etc
- Take your child
on the weekly food shop
If your child is able to use a calculator, they can help
you shop. Allow your child a set amount that would
typically cover the weekly shop. Give them the freedom
to compare food labels and prices and choose the best
value for money.
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