Life & Living Well

It struck me the other day that parents worry needlessly about whether their children are going to be wise when handling money on reaching maturity and earning an income. They should not be concerned. By definition, a parent who worries about this worries needlessly. The very fact that such a parent even thinks about it shows that that mother or father is completely aware of the value of money and the fact that it needs careful management right through one’s adulthood. Children are like little sponges: they pick this up practically at the moment they realize that these little coins or that note can be exchanged for marvellous products such as sweets and toys. With great interest and concentration they watch the way their parents handle money so that they can do the same. So the money habits of the parents are really inculcated immediately in the little child. Later on the child’s financial education might need a little directing and enhancing, although his or her basic approach will have been set by parental example. I recommend using the resources and advice available with regard to educating your children about money , that can help you to flesh out their knowledge and give them the confidence to handle money and make monetary transactions. Finally, when they are pre-teens and teenagers, they should be taught the finer points of currency fluctuations; simple and compound interest; inflation and investment plans. And it can only be a good thing to help your young child to invest in a Child Trust Fund through a reputable bank, so they can see the value of a long-term investment.

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