At what age do children really understand the value of money? Experian research* found that 65% of parents of 5-9 years olds are confident their child has a good appreciation of the value of money, while 69% think their child has a good appreciation of the difference between a necessity and a luxury.
However, by the time those children get to the 15-18 age bracket – a time when they are mostly spending money themselves and in many cases earning it – 20% of parents are not confident their child has a good appreciation of the value of money.
Of those parents who give their children pocket money, more than a quarter (27%) say that their child most appreciates money they have earned, as opposed to a fifth (20%) who have saved it, 18% who have been rewarded and 11% gifted.
A further 23% said they didn’t think their child distinguished between money earned, money rewarded, money saved or money gifted.
Interestingly, almost twice as many parents (52%) say their child will become a saver than (28%) a spender, while 35% believe their child’s attitude towards money is influenced by their personal experiences and environment.
Boosting financial education for primary age children
Although financial education became a compulsory part of the secondary-school curriculum in England in 2014, some pupils are still missing out, particularly in primary schools.
University of Cambridge research, commissioned by the Money Advice Service, shows that by the age of seven children have developed their attitudes and values towards money** – and these are likely to stay with them for life.
Sarah Willingham, consumer champion, mum of four and BBC Dragon, told us: “It’s clear that kids’ attitudes towards money are shaped at a much younger age than we think, so we need to start the process of talking about money at home as early as possible.”
Jangle – a new free app
Recognising the importance of helping children learn essential money management skills early in life, Experian and Sarah Willingham have partnered to develop Jangle, a free app which has been quality marked by pfeg (part of Young Enterprise).
Jangle is a great new and free app for children aged 7-11, that teaches children money skills in a fun and easy way while helping them save for the things they want. You can find out more about Jangle here, and you can download the Jangle app for iPad here.
*Research was carried by ComRes who interviewed 1,533 British parents of children aged between 5-18 online between the 19th and 23rd of January 2016.
** Habit Formation and Learning in Young Children, by Dr David Whitebread & Dr Sue Bingham (University of Cambridge) : Report commissioned by The Money Advice Service May 2013