As a mum of three and with 25 years in the accounting and finance game it is clear to me that children need help with money to become financially independent, successful and savvy.
So how do we raise them to succeed?
1. Be a positive money role model and teach them early to think with their head not their heart.
2. Start them young with regular pocket money, it helps familiarise them with the concept of money.
3. Cash is on the way out, so build skill with debit cards
4. Start on simple budgeting and build their skills so they learn not to spend more than they have!
5. As they get older introduce the 20/50/30 rule. A. 20% for savings. B. 50% for needs (the necessities). C. 30% for wants (discretionary).
Finally, don’t molly-coddle their finances. Give them guidance but don’t control it, as it’s their responsibility!