‘Darling, it’s time we had the talk’... Sitting your children down to talk about money can be daunting, but it is important to educate them early about money.
There are several topics that are difficult to talk to children about; sex, drugs, rock ‘n’ roll… and money. But talking about money is important to help them get into good habits early so that they can master their personal finances. New tech in finance is making it easier and easier to handle money, but this could also mean it is easier and easier to spend, and financial responsibility is a must. Especially when they’re off to uni and enjoying all the new freedoms a life away from home can bring. There are many great products and offers out there to help students with their money, from student accounts, 0% overdrafts and credit cards, but it is important that your child understands debt, and how it can affect them beginning to build their credit score.
1. Real time notifications
Contactless payments are just one of the innovations in finance that make our lives easier, they’re a dream when you’re rushing for your morning coffee or navigating the London Underground, but they can lead to overspending if you’re not careful. Encourage your child to keep a close eye on their outgoings to enable them to stay in control and make adjustments if needed. Many banks, like Monzo, offer real time notifications and in app budgeting to help with awareness around spending, to make it even easier.
Their first loan or grant payment might seem like a lot of cash for a student, but it won’t last long if they aren’t sensible. Emphasise the importance of budgeting and understanding their money inside out is a great way to stay in control. Help them create a budget which documents their income and outgoings to enable them to stay on top of their personal finances.
3. Put money aside in groups
They’re going to do everything together at uni, studying, nights out, last minute essays, so why not encourage them to put money aside in groups? StepLadder offers a First Step Circle to help people get into good money habits, putting aside as little as £25 a month through a peer-to-peer solution, and potentially helping to build their credit rating.
Helping them develop good habits and making them aware of the importance of money management should help them stay on top of their finances, but always encourage them to talk to you if they are worried.
Michaela is the Head of Communications at StepLadder and is passionate about helping people be at their best!