Scottish Money Coach Urges Parents To Talk to Kids About Money

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Teaching your kids about money has never been more critical, given the constantly evolving nature of money today and what it will look like when your children oversee the economy; we asked Edinburgh based Tynah Matembe, host of the "Grow Your Money" Podcast and Founder of MoneyMatiX, for her top tips in MY MONEY WEEK.

It is 'My Money Week' - a national activity week that aims to get children and young people aged 3 to 19 excited and interested in financial matters. My Money Week is designed to help them gain the skills, knowledge, and confidence needed to thrive in money matters.

Research shows that it's best to start teaching kids about money management at a young age to instil lifelong financial knowledge and habits. Children in the UK are estimated to receive 3.3 billion pounds in pocket money and cash gifts - so proper financial training is a necessity and it's up to us parents primarily to teach our children how to manage their money well because the child's first point of call when it comes to money habits is picked up from home. So, intentionally integrating financial education into our children's lives is an investment in their future success, and guess what? It doesn't have to be boring.

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Leading by example is the key to instilling good money habits because children learn best practically. Demonstrating responsible financial practices and discussing your goal-setting process can have a significant impact on their attitudes toward money. Don't panic if you don't feel confident managing your money yourself. You can head over to MoneyMatiX and download your free Parent's guide to confidently get on this journey.

Money Coach Tynah MatembeMoney Coach Tynah Matembe
Money Coach Tynah Matembe

Here are some creative ways to impart financial wisdom to your kids.

Quality Chats:

At MoneyMatiX, we emphasise having quality conversations with your children. Quality conversations cultivate critical thinking and encourage children to think outside the box when facing challenges.

  • Encourage open discussion and allow children to express their thoughts and ideas without fear of ridicule. Open discussions include not always instructing and offering them a chance to share their thoughts.
  • Rewarding creativity and idea generation will teach them that they are capable and that their views are valid. Positive affirmations and seeking their opinions will build their confidence and raise their attainment.

Lay good foundations

"Give a man a fish, and you feed him for a day; Teach a man to fish, and you feed him for a lifetime." (Chinese proverb)

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They can do it, folks! Start by involving them in money conversations during shopping trips, putting them in charge of the shopping list, challenging them to stick to a budget for the weekly shop, and rewarding their efforts.

This practical involvement will help them learn about prioritisation and budgeting, which are necessary foundations for understanding the value of money. It will also naturally sharpen their financial acumen and allow you to have those quality conversations.

Set SMART goals together.

Avoid handing out things your kids want on a whim. Instead, encourage them to set goals and targets and justify why they want stuff.

  • Make it fun by making a visual savings goal chart or, better yet, a savings jar for that dream toy or trip. Make a fuss of it and let them decorate it however they like - stickers, paint, glitter galore!
  • Remember to celebrate milestones along the way - small victories deserve big high-fives!

Doing this will build patience and lay the foundation for wise decision-making.

Teach them to Earn

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Pocket money is a great way to teach children good money management habits. A key trick parents miss is that you are telling them money is free by just handing kids money. Instead, associate any money they receive with accomplishing something or a milestone, however small. So you train them to understand that money must be earned. Remember, folks; there is no such thing as a free dinner; the sooner they know this, the sooner they will embrace work and productivity, and you will be able to illustrate how this directly impacts what one earns.

I found it important to teach the repercussions of not meeting tasks by reducing pocket money when agreed tasks were not completed.

This sense of achievement is far more rewarding for them than simply receiving handouts.

Make money fun

Children soak up information like sponges when it's fun and interactive so consider turning money lessons into playtime!

  • Money Maze: When they are younger, introduce coins and notes, explain their values, and play "shop" at home. Give them fake money to "buy" toys or snacks. It's hands-on learning at its best. As they get older, take the game up a notch by involving them in real-life shopping trips. Give them a budget and let them make choices - it's a crash course in decision-making and budgeting.
  • Double the Dough: Give your child an amount of money and challenge them to find a way to double it and keep it or lose it. Listen to their brainstorming and make it fun and memorable

Cultivate generosity and empathy: Cheerful Giving.

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Acts of charity and kindness are very valuable, so encourage your child to set aside some of their money for donations or to help those in need. This will build compassion and a sense of community.

You can do this by always asking them what portion of their money is doing good.

And here's a secret weapon that can get you there faster:

I have produced a FREE E-book for you to help your children to understand the value of money and think like an entrepreneur. It introduces you to my own mantras to help your children form strong money management and wealth habits. It will show you a way to teach your children about compound interest, setting goals and budgeting and it underlines the importance of having quality conversations about money with your children.

You can download a FREE copy from www.moneymatix.com

And for those parents in and around Scotland, why not:

  • Enrol your child in our 'MoneyMatiX Youth Money Camp' - a life-changing event for them taking place this September.

We base our Money Camps on the virtues of discipline, prudence, and generosity to turn money lessons into unforgettable experiences.

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Ultimately, young people need good role models, and this three-day event will give them a foundation for making sound money decisions. It will include mentors and tools for life at the aspirational Edinburgh University Business School and an unforgettable event to showcase what they have learnt during the Camp.

To enrol your children on Tynah's 'Youth Money Camp' go to https://www.moneymatix.com/scotland-youth-money

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