Talking About Interest
Explaining the basic concept of interest can really jump start your child’s enthusiasm for saving and help avoid running up debts in later life.
Here at RoosterMoney HQ we know building good money habits isn’t just about having a pocket money routine, it’s about all those little conversations and money management decisions that go along with it too. So we’ve pulled together a few guides that should help with some of those areas. We’ve split them into two categories ‘talking money’ and ‘managing money’.
Explaining the basic concept of interest can really jump start your child’s enthusiasm for saving and help avoid running up debts in later life.
Compound interest is the super power that expands your savings – or makes a mountain of debt. The earlier you understand compound interest, the earlier you can start making the most of it!
Talking about the different methods can help kids realise plastic cards aren’t a magical source of money!
Sadly, money doesn’t always appear magically as pocket money or birthday presents. Helping kids earn cash, rather than just handing it out, can teach them about the value of money.
Introducing the difference between Needs and Wants will help your kids decide where to spend right now, and even how to budget in later life. Win-win.
Setting a goal gives your kids a reason to start saving!
