It'_s time to start teaching your children about money 

Financial personal training company, enableMe, is urging parents to introduce ‘money talk’ into their everyday conversations with their children – and to start from an early age.

Hannah McQueen, enableMe’s founder, says: “Money management is one subject that you won’t typically find in the parenting books and yet being financially savvy is an essential life skill. This is particularly so in our current climate of credit, where it is easy for our young people to borrow rather than work and save for what they want – be it a phone or a car.”

Money is an important issue that influences many aspects of life. It can cause stress, discomfort, insecurity and anxiety. It can hinder our career path, impact on our decision-making and it can have a detrimental effect on relationships.

“We need to encourage our young people to have a healthy relationship with money. We want them to feel confident about being able to manage their finances. We can achieve this if we set a good example ourselves and start to pass on the concepts of saving and spending as well as explain the basics of how money works and, importantly, the pitfalls of credit.”

She adds that it is never too early to start and that playing shops with toddlers and letting them ‘pay’ on shopping trips is a great way to introduce the topic.

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For older children, Hannah suggests:

• Explain why you work and the concept of pay day.
• Talk about how much money comes into the household and how much goes out (you can use percentages if you prefer not to reveal the actual figures).
• Discuss the idea of budgeting – draw up a budget for your household.
• Talk about saving and borrowing – and the interest you pay on loans.
• Use cash on shopping trips to make money more tangible.
• Encourage your children to always check the price tag before buying anything.
• Encourage them to ‘earn’ their own money – either with your help or, if they are old enough, via a weekend job.

enableMe’s recommendations come in the lead up to Money Week 2015. Designed to encourage New Zealanders to talk more about money, and hosted by the Commission Financial Capability, Money Week runs from 31st August – 6th September 2015.