Managing money well is a skill we all want our children to pick up, and in the same way that ‘charity begins at home’, so can financial management.
Research by Experian* has revealed that most (58%) parents are trying to take an active role teaching their children how to manage money well.
Video with Sarah Willingham: How do you teach children the value of money?
Over half (51%) of parents who give pocket money do so to help their children learn how to manage money independently. However, their good intentions are being undermined by a number of factors.
• 67% do not take a consistent approach in ensuring their children earn their pocket money; only ‘sometimes’ aligning it to doing chores.
• 42% of those surveyed (parents of children aged between 5-18years) admitted they did not try or were not managing to take as active a role as they would like
• Of these parents, 36% struggled to find the time to take a more active role
• A further 30% cite a lack of confidence, knowledge or suitable resources as factors that are holding them back.
And a significant number of (37%) British parents have concerns about their child’s ability to manage their money when they eventually do become financially independent.
Commenting on the research Sarah Willingham, consumer champion, mum of four and BBC Dragon, told us: “It’s clear that despite our best intentions as parents, long term we’re not doing our kids any favours by just giving them pocket money, rather than giving them the chance to earn it. Pocket money is often the first experience children have of managing money, and I’d like us, as parents, to take a more active role in teaching our kids the importance of earning their pocket money and saving for the things they’d like.
Boosting financial education for primary age children
61% of parents surveyed believe that their child could receive more support about how to manage money well in school. 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 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. Find out more about Jangle – 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