When they’re almost adults
Once a child has left compulsory education at the age of 16, whether they choose to go to sixth form, college or begin an apprenticeship, they’re able to do far more independently. Helping your child out with their finances at this stage of their life is crucial when it comes to making decisions about their future.
Help them get a part time job. At the age of 16, children can legally apply for a wider range of part-time jobs to earn money while they study. Part-time jobs could be anything from working in a hair salon or a shop to serving food in a restaurant. Again, earning their own money could make them feel a greater sense of freedom when it comes to going out with friends, socialising and shopping, and might teach them to start budgeting effectively so that they could do these things.
Meet them halfway. If your child is learning to drive, why not encourage them to save for their car, and reward their saving by putting some money towards it too? Encouraging them to save for bigger things could really help when they are looking to save for new cars, holidays or a house later on.
Prepare for the future. If your child is going to university, teaching them the dangers of debt and credit cards could really help them stay out of financial difficulty. Instead, you could discuss their options when it comes to paying for tuition fees, rent and living costs at university – such as student loans, small fee-free overdrafts, getting a part-time job and budgeting effectively.
By increasing your child’s financial awareness during their childhood and teenage years, you could help prepare them for the real world of earning, spending and saving in their adulthood and beyond.