The pandemic is putting particular pressure on purse strings for everyone. As we all feel the pinch, it becomes more important than ever that we help children stay on top of their finances.
After all, it’s not just that times are tougher, but as children spend more time in the digital world, the temptation to accidentally break the bank becomes ever-stronger. We’re living in the age of the in-app purchase and one-click payment, don’t forget. To ensure that the best-laid budget plans are not undone by unpleasant end of month surprises, it is mission-critical that we teach children the value of money in all its forms.
To help ease this conversation along, we wanted to break down some of the best methods that we have heard from nimbl parents on how they are helping their children stay on top of their spending and safeguard their savings.
Lessons from home
It’s a key industry in the pocket money economy, but there’s no better time to financially incentivise household chores than during lockdown. This will not only help get those bedrooms tidy, but also helps give your children the sense that they are mucking in with the family during difficult times. It also helps deliver the critical lesson to children that, even though they are stuck indoors, money still doesn’t grow on trees.
Get them involved in the shopping
Let’s face it, the occasional trip to the shops is the highlight of the week for many, and a rare opportunity for a family outing – in keeping with social distancing guidelines, of course!
Why not, then, get children involved in budgeting? Tell them exactly how much there is to spend and see if they can sniff out the bargains. At a time when we’re all having to keep a handle on our spending, this can be a great way of instilling in children the value and practicalities of budgeting.
Set a goal
Lots of children save money with a clear end goal in mind: a new bike, a trip to the cinema or spending money for the next holiday. Whilst at home, children risk losing the incentive to save, so it is important to help children set a goal and to help monitor progress.
It might be that, once the goal is agreed, you offer to contribute half or agree the tasks that need to be complete for pocket money to be earned. Either way, this can be a great way of instilling important saving skills in your children as well as getting more involved in their financial journey.
Cashless payments were already becoming the new norm, even before lockdown. And to help children learn that every tap can add up, parents need to ensure that digital spending is included in pocket money they give. Children learn by doing, and so by having the ability to safely navigate the growing world of e-commerce will help them become financially confident, finically competent adults.
This is where apps like nimbl, with instant notifications, can help. Of course, online spending can be entirely disabled for that extra peace of mind!
Are you finding that your children are spending more during lockdown? Parents, let us know what you have been doing to encourage children to save during this period.