2020 was a year of financial fragility, plagued with money worries for many people, and research suggests that our children are picking up on our anxiety.
According to a monthly study of children’s mental health during the pandemic, those from low-income families showed higher levels of anxiety and stress, with symptoms including unhappiness, worry and restlessness3 .
Opening up the conversation
While your first instinct may be to hide your money fears from your children, this may actually increase their anxiety. Indeed, research shows that children who are regularly exposed to conversations about money and finance tend to grow up to be more financially confident adults4 .
Making teaching fun
Here are some fun and engaging ways to teach your children about spending, saving and the value of money:
Play board games
Games such as Monopoly or Payday can provide hours of family fun, while simultaneously teaching your children about living expenses, tax, budgeting and saving.
Make it a challenge!
Are you looking for cheaper broadband or utilities? If your children are a bit older, challenge them to find a better deal – with a percentage of the savings they make as a reward!
Turn the food shopping into a game
Give the kids a list and ask them to look out for cheaper or own brand products, as well as money-saving deals. You could even offer a prize for the most money saved.
Reward hard work
Offering a small ‘wage’ for completing household chores teaches children that money is something to be earned in exchange for work.
Supporting you to support your kids
We understand that many people remain anxious about the state of their finances. We can help you get your finances back on track, leaving you free to support your kids through this demanding time.
3 Co-Space Study, 2020, 4 Money & Pensions Service, 2018
It is important to take professional advice before making any decision relating to your personal finances. Information within this page is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK.
Tax and Estate planning are not regulated by the Financial Conduct Authority
The value of pensions and investments can fall as well as rise. You may get back less than you invested.
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