1. Children should know where money comes from, and be familiar with receiving pocket money. This is where you can talk about where it comes from – working hard in a job! It might also be a good idea to talk about those people who don’t work, or can’t work, and those who are retired draw a Pension.
2. Help children recognise the difference between what they want and what they need and how things must be prioritised. This could be where you identify that adults must pay for things they need, before they are able to acquire the things they want.
3. Teach about the importance of budgeting. You could talk about how you organise the monthly household spending or ask them to plan a make-believe party using a specific amount of money and work out what they will spend on different items. This could be a good time to explain how people save to purchase the things they want
4. Talk about where people put their cash to keep it safe, and build their appreciation of money having real value. Explaining that they need to look after their money carefully is a great idea.
5. Older children can begin to be taught about the different forms of borrowing money and how important it is to be able to repay it over time. Explain about interest and how that means you pay back more than you borrowed. Tackle the risk posed by not repaying borrowed money, and make it clear the responsibilities that it involves.
