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Article by Chris Timm

3 heartfelt tips to help your kids build a healthy relationship with money

This Valentine’s Day, rather than just getting all lovey dovey with that special someone, it’s also worth showing some love to another type of relationship – your kids’ relationship with money. It’s a topic we probably don’t spend enough time thinking about, but it’s something our kids will have to deal with each day as they tackle their own money matters. The earlier we start money convos with our kids, the earlier they can start building the skills needed to have a healthy relationship with money throughout the rest of their lives.

In the spirit of love and money, we’ve handpicked three heartfelt ways to improve your kids’ relationship with money. Just as love grows and evolves, so too can your kids’ confidence when it comes to getting to grips with their own money.

1. Communication

Like any good relationship, communication is key (and money is no different). Have open convos about money in front of your kids on everyday topics like household spending, saving for that new fridge, or anything else you can think of. Try not to shy away from talking about any of your money mistakes or what you’ve learned along the way either. As the kids see this type of transparent behaviour, they might feel more comfortable asking questions and talking through any money concerns as they get older.

To make it more hands-on, you could pick a TV show, a movie, or even a board game that deals with money management, then talk through all the money related lessons as you go. Perhaps you could teach the kids about making wise spending choices when watching The Apprentice, or maybe Monopoly is more your thing to show them the power of spending money in the right places. For other creative ideas to teach your kids about money, check out this list of crafty activities that can help them get to grips with money in no time.

2. Wants vs. Needs

Let’s face it, we’d all love to spend our money on the things we want all the time, whether it’s that new pair of trainers or even that fancy new TV. Unfortunately, the reality is that we wouldn’t have enough money for all the essential things we need on a day to day, such as food, rent, bills, etc.

Kids don’t always pick up on the difference between the two, and who can blame them with all the exciting items in the shops? But helping them understand why we sometimes have to prioritise for the things we actually need can really help them to be more considerate with their spending.

Start by writing down a list with them and place different items under a column of ‘wants’ and then the essentials under a column of ‘needs’. Breaking it down in simple terms can help to remove the immediacy of purchasing and encourage them to make smarter spending choices when they’re out and about. Check out this handy article we’ve written for more info on opening up the convos with your kids on needs vs. wants.

3. Actions speak louder than words

One of the best ways to teach your kids new skills is through action. Many kids learn by doing themselves rather than being told, so have a think about different ways you can get them more hands on with money.

For example you could give them pocket money in exchange for doing chores around the house, or you could help them set up their own savings goal so they know exactly what they’re aiming for. Not only can this help to upgrade their skills, it can also give them a sense of independence to keep them motivated along the way.

That wraps up our top three tips to help your kids build a better relationship with money. Help your kids to put these tips into practice and they’ll be able to build a great relationship that is sure to go the distance. For more tips on teaching kids about money, check out this detailed article for even more ideas.