Money and Finance 11+

Money Matters for Teens

Children and young people growing up today are exposed to an increasing range of financial decisions. These can range from day-to-day activities, such as downloading apps and music online, to longer-term decisions, such as how to finance a car purchase or whether to attend university or look for employment.

Martin Lewis (Money Saving Expert) has produced a free school text for Financial management that can also be used by parents. The top tips for educating a young person in finance matters are:

• Give your child an allowance or pocket money at an early age
• Encourage your child to set a saving goal
• Show them how to budget
• Teach the difference between a NEED and a WANT purchase
• Explain that if you borrow you are giving up future income
• Explain credit & debt and the consequences of not keeping up with agreed payments on credit cards & loans

One way to help teenagers take responsibility for their money is to talk to them about their financial responsibilities. Talk to them about your income and what you need to budget for. This includes bills, shopping, and anything you spend on them, such as school lunches or trips.

Top tips to encourage your child to budget and save

1. Make a budget.
2. Wait before deciding to buy something.
3. Look for sales or discount vouchers.
4. Get a 16-25 railcard.
5. Ask for help.