Talking about Money with kids...

As someone who believes that managing your budget and finances is a skill that should be learnt from a young age, I wasn't surprised to read that research conducted by Think Money showed that three quarters of parents would like financial education to start in primary school. I agree that as children learn the basics of Maths they should also be taught about money and how to manage a budget.

I was lucky that my mum taught me important financial skills from a young age and this introduction to budgeting has meant that from the age of 17 when I moved out on my own and had bills to manage I have done so successfully and always managed to live comfortably withing my means. It worried me when I saw friends at University spending their student loans within weeks and then having to rely on credit cards and the kindness of friends to survive the rest of term. These were intelligent young people who just hadn't been taught how to manage their money.

I want to ensure that both of my children grow up with a firm grasp of how to mange their money and I strongly believe that the way to do that is to encourage this from an early age.

My top three tips financial tips for children are:

Learn to manage a budget - This can start with simple things like having pocket money that they have to manage themselves and use to buy their own treats, rather than being bought things on days out.

Encourage Saving - I think it's really important to teach children to understand that if they want something, like a particular toy or day out, they may have to save up for it. Children respond well to visual aids so a good way of doing this is to get them to draw a picture of what they want to save up for and stick this on to a clear glass jar so they can see their coins build up towards their target.

The Value of Money - One of the most important things for children to learn about money is that it has a value. It doesn't just 'grow on trees' but is earned through hard work. I'm not advocating child labour but a few simple age appropriate chores such as tidying their bedroom or helping set the table for dinner in exchange for pocket money can help to teach children that money has value.

To encourage parents to talk about financial skills with their children the folks at Think Money sent us a plain brown piggy bank and a Hobbycraft voucher to get creative with.

I took the opportunity to talk to my children, Ben who has just turned eight and Elizabeth who is four about what they like to spent their money on. Elizabeth talked about sweets and toys as well as books from our local charity shop which are quite short term, whereas Ben was looking further in the future towards spends for holidays and Cub camps. We talked about saving up and he showed an understanding that if he kept hold of the few coins he got on a weekly basis he would have a much larger sum in the future.

Ben has recently swam up from Beavers to Cubs and this weekend went on his first cub camp so it seemed apt that he decided to use this as a theme for the piggy bank.

Both children loved choosing their craft supplies in Hobbycraft and Elizabeth helped Ben paint the pig green, decorate it with the Cubs logo in glitter glue, coat it with decoglue to give it a glossy finish, while he very carefully made some challenge badge and a fabulous necker from coloured felt that matches his own!

We're all really proud of the finished Piggy Bank and I hope it will give Ben the perfect reason to save up his pennies toward spends for his next camping trip.

This is an entry into the Think Money Budgeting with Children Competition.

Five Ways to Save For Your Child's Future...

I often think about my childrens' future. I think about what they may be when they grow up, about their first relationships, their first jobs, whether they will go to university or travel the world, maybe both?

I have no expectations other than wanting them to be happy, to follow their dreams.

I wonder about becoming a grandparent, watching my own children take on the Mummy and Daddy roles that they so love to 'play'.

Whenever I think about this I also worry about money. I don't want money to be the defining factor in what they do with their lives but I don't want them to be held back by a lack of it either.

Although they will always be my babies, I know that the time will come when they will fly the nest, when they won't need me to protect them from the big wide world any longer and although at the moment I look upon that day with fear and trepidation I also want to prepare for it, and they only way I know of doing that is to make sure that they have some financial security when it comes.

I want to provide them with something. It won't be a lot but could help them live their dreams, maybe pay towards tuition at University, enable them to see amazing places around the world or even contribute towards a deposit on the house that they will bring my grandchildren up in.

Whatever they would spend it on I need to decide how exactly I am going to save for my childrens' future. I've been looking in to the different options out there and have put together a selection of ways to build up a next egg for your child...

1. If you have a child who was born before September 2002 or after January 2011, you can start a Junior ISA for them. The Sippdeal Junior ISA offers a way of saving for your child's future that is free from tax and allows anyone to pay money in, up to a limit of £3,720 each tax year. This makes it ideal for other family members to contribute too. You can save from £25 a a month using their Regular Investment Service. and if you decide to invest in funds you will receive an annual cash bonus of up to 0.5%. The child will then be able to access the savings once they turn 18.

2. If your child does not fit into the age brackets above then you will have been sent a voucher to set up a Child Trust Fund (CTF) when they were born. As well as this initial bonus which would have varied depending on when your child was born (my son was sent £500 where as my daughter got £50)  you can also add your own money to build it up for your childs' 18th birthday when they will be able to access it. These accounts are also free from both income and capital gains tax and again have a limit of £3,720 each tax year. MSE has a useful guide on choosing the right CTF.

3. You may want to save regularly but for your child's future but also want them to have access to it before they are 18. What if they have the opportunity to travel or find their independence before they are 'officailly' an adult? There are savings accounts out there that will allow you to pay in regularly but will give your child access before their 18th Birthday.

4. What if you want to put a lump sum away for them? Have you been left some money, remortgaged or sold a family heirloom?! A savings Bond is a good way of putting away a set amount without having to add regular contributions. Fixed rate bonds will tend to pay higher interest rates and the terms start from 5 years, allowing your child to access the funds after this time.

5. Encourage your child to save. Teach your children the value of money from a young age and whatever and however you do decide to save for them it will be spent wisely and when needed rather than squandered as soon as they turn 18 and can withdraw it!

So there are some ideas on saving for your child's future, Do you already have an account for your child? What would you recommend? I would love to hear your thoughts.

This post was sponsored by Sippdeal.