How to help children use their Communion money wisely

As the mother of 10-year-old Finnegan, Curtin believes children know more about money than parents might think and can grasp basic financial concepts like saving and sharing from an early age. “Children hear mum and dad discussing money almost constantly; work, school, savings, shopping, paying the bills, hopes, anxieties, ambitions: money is an ever-present soundtrack.”

So how can parents make their children money-wise? As with most aspects of parenting, says Curtin, it’s all about showing the way.

“Parents lead by example. If we’re not just telling our kids to be careful with money but also showing them how and why we’re careful, then they’re far more likely to acquire good habits in relation to saving, spending and sharing money. And because children learn best through play and practice it’s important to make money management fun.

“Playing ‘store’ with your child is a great way to teach them about value for money and also to get a sense of the value they place on certain items. I can remember playing with my son and him trying to charge me a tenner for a pack of Teddy Grahams [chocolate biscuits] because they were his favourite. I suppose that’s not too dissimilar to our willingness to pay outrageous money for our favourite things.”

Curtin believes it is vital that children learn early on the difference between wants and needs.

“When you’re shopping with them ask questions like: Do we need this? Can we get it for less elsewhere? Which is more important, a winter coat to replace the one that’s too small or a new pair of runners when there’s a perfectly good pair at home. On the issue of pocket money, Curtin says while it’s a personal decision for parents, it can be a terrific learning tool.

“Pocket money allows kids to make their own decisions about how to manage their own money and make their own mistakes. Buyer’s remorse is a tough lesson that can only be learned the hard way. Once it’s gone, teaching children the value of saving can be challenging says Curtin, not least because they are creatures of impulse. But it can be done.

“Encourage them to put some money aside so that saving becomes an automatic part of their thought process. Explain that this is what you do too — point out your bank the next time you’re passing and draw the comparison between your savings and theirs.

“Tell your kids why you save: not just to spend (a new TV, next year’s family holiday) but also for the unexpected (that inevitable rainy day).

Saving for specific goals can be very fulfilling but if it takes too long children can lose interest, so help them set small and realistic targets like a toy or book. If the goal is longer-term, come up with a plan to help them reach it in a reasonable timeframe.”

Encouraging children to earn and manage their own money is central to the theme of Cents for Kids.

“There are multiple ways children can receive money, such as gifts for Holy Communion or a weekly allowance tied to chores, but encouraging children to look for jobs that need to be done and to come to you to negotiate pay is full of all kinds of life lessons.”

According to Davy’s head of marketing Stephen Jackson, the idea behind the Cents for Kids initiative is to provide parents with the tools they need to begin a healthy dialogue with their children about money.

“One such tool is the Cents for Kids 2015 wall calendar. Aimed at the five to 15 year age group it features useful tools and tips such as job charts and monthly worksheets to build children’s understanding of money and the fundamental concepts around saving and budgeting,” he says.

It’s the little steps that count, says Curtin. “We, as parents, are the number one influence on our children’s financial behaviour and the sooner we start taking advantage of everyday teachable moments, the better off our kids will be.”