Change money habits at Communion time

by Gazette Reporter

WITH Communion season fast approaching many parents may look for advice on how best to approach the topic of money with their children. Cents for Kids, a Davy Group initiative focuses on building financial literacy in children, and supporting parents with the tools and resources they need to begin a healthy dialogue with their children about money.
Communions present a great opportunity for parents to teach children how to earn, spend, save and invest money from a young age.
The following tips are important for parents first broaching the subject of money with their children.
Earn: It is important to help children understand that money is primarily earned. Talk to your children about how people get paid for the work they do. Help them to identify jobs they can do to earn money, be they weekly chores or odd jobs. This encourages children to think opportunistically and identify earning opportunities, an invaluable life lesson.
Spend: Learning to spend within your means and plan ahead are foundational to effective money management. Children need to understand that we all have a limited amount of money at our disposal. Make a list with your child before going shopping to focus on needs instead of making impulse purchases.
Save: Get children a piggybank and when they receive money, say, “Let’s use some for spending and set some aside”, so they begin to get used to the idea of saving. Help them set a small, obtainable goal like buying a toy they would like.
Invest: Talk to your children about the importance of investing. You can encourage long-term savings and investment in children by way of a matching programme – for instance, once they have saved €100, contribute €100 of your own money.
Marah Curtin, head of client engagement with Davy Private Clients and founder of Cents for Kids, said: “Children begin learning about the financial world at a very young age. Educating our children about basic financial terms and concepts can significantly prepare them for challenges they may face throughout their lives and provide them with the skills they need to be financially savvy.”

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