How can we talk to children about money worries?
As much as we try and protect our kids, redundancies and job cuts are front and centre in the news at the moment. A few weeks ago we asked how we could talk to children and young people about family finances.
Have a read of the brilliant advice leaders, parents and teachers shared, and add your own on our Facebook post.
An activity for Scouts
Ross told us about an activity he ran with his Scouts [aged 10–14]. ‘Each patrol [group of Scouts] started with the average annual salary for the local area and then had to plan a month’s budget based on what they considered to be essential.
It stimulated debate on various ideas (some couldn’t imagine living without two cars or international travel, while others championed public transport and staycations or protecting the environment more than other activities).
As they planned out their month’s budget, I started introducing average local figures for all the bills they hadn’t thought about (water, council tax, rent/mortgage, electricity, insurance). It was enlightening to see how wrong some of the budgets were, where they’d included things, and what they thought was possible.
It was important to stress that no one view was more right than any other, but it opened some eyes about how much you need to earn to enjoy certain standards of living.’
Talking about redundancy
Belinda shared some advice on how to speak to young children about redundancies. She said: ‘The couple of times when we’ve faced redundancies, I was open and honest from the start. My child was young, but it’s important that we have to make do and mend.
On the upside, the parent is home more but on the downside, money is less. It’s important to explain that having the latest gadgets or gizmos isn’t everything; what’s more important is family.
I’ve always explained about what gets paid out – utility bills, food, cars. Unfortunately money doesn’t grow on trees.’
An activity for Cubs
Ian also shared an activity he’s run with his Cubs [aged 8–10]. ‘Have a chat about what adults have to pay when they work or don’t work.
Turn it into a game where they have to work and get money every 10 minutes, then the banker takes his cut for rent and their government takes their cut etc.
My Cubs loved it, even though at the end they had nothing to buy tuck with.’
Saving and spending
Marie spoke about the ways she’s explained finances to her sons: ‘I find with my two boys that honesty and simple explanation is the best way. I explain that if they break things, it stops us from doing other things, etc.
They have a small amount of pocket money for chores that they learn to save for the things they want. They understand the idea of working hard to try and make sure you have enough to live.’
Camp planning
Ros suggested getting young people involved in planning activities. ‘Get the Scouts at all ages involved in camp planning. Then they’ll understand the costs and why. We get Explorers [aged 14–18] to do the shopping and make sure it’s in budget. Gets them thinking about costs of food, food quality and ethical standards. I’d say it’s a skill for life.’
Make a pound grow
Joanna shared an idea for an activity she runs with her Year 6 students at school. ‘Each child gets £1. They work in a small group to plan an activity to generate as much profit as they can over a few days or weeks.
The [£1] stake buys the first ingredients/materials, they then hold events to sell [what they make] and can reinvest profits into the next event.
The profits go to a chosen charity, and the cohort competes against the previous Year 6… so the teams support each other. It’s the highlight of the post-SATs summer term!’
Other advice
There was far more brilliant advice on our social media posts than we could include here, so make sure you have a read.
Some groups have invited local speakers or parents with relevant experience to help teach children about finances and money worries, for example.
We’re grateful to everyone for taking the time to comment. Thank you!