The financial tips we wish we'd learned as a child
We look at budgeting tips that we wish we’d learned as a child, and how to teach your child the value of money.
At Lowell, we understand that finance and debt can have a real impact on mental health. That's why we're looking at some of the simple budgeting tips that we wish we'd learned as a child.
We believe that learning about the value of money at a young age can really help to teach good financial habits which will last a lifetime. It can also help to reduce the likelihood of stress or anxiety caused by money worries when they are adults.
Financial tips we wish we'd learned as a child
Learning about money early in life can really help to create good financial habits before you head out into the world.
Here are some simple financial tips and suggestions that we think would be helpful to know at a young age.
How debt can affect your credit score
Before you head out into the world of credit cards and loans, it's important to understand what a credit score is and how debt can have an impact on your credit score. It's important to understand the facts about debt and credit.
Even if debt has affected your credit score, there are things you can do to help, such as working with a company like Lowell to clear debts in an affordable, manageable way. Check out our guide on how your credit file affects you for more information.
How interest works
Understanding interest - and how it works when you borrow money or take our credit - is key to good financial health. That's why we think it's important to learn about it when you're young and developing new financial habits that could last well into adulthood.
Learning how interest is added to debt could help you to avoid becoming overwhelmed with expensive debts, with interest piling up if you aren't able to make repayments in a timely fashion.
Remember, if you're working with Lowell we won't ever add interest or fees. Every penny you pay will go towards helping to clear your debts.
How to shop around for the best deals
When you're young, it's easy to just accept that the given price is the only price. But it's important to understand that you can always shop around for the best deals to save money. Whether it's home insurance, credit card rates or even just a pricey item that you want to buy, it's always worth doing research before making an investment.
Everyone worries about money
Money is important, and it's normal and healthy to worry about money a little bit. But if money issues become overwhelming and you struggle with financial stress, it's also important to understand that you have options and that there are organisations who can help you.
We can help by putting you in touch with organisations who offer independent advice and support.
Help is available
At Lowell, we work with some fantastic independent charities and organisations who are there to help. We think it's important that everyone knows from a young age that help is available and that you don't have to worry or struggle on alone. If you feel you need some guidance or advice, check out our guide to debt support for more information on how we can help.
How to help your child learn about money
Good financial health can start early and will help to set your children up for the future. Learning to have a healthy relationship with money can help to avoid future stress and worry, and support mental health, even in children.
If you're looking for ways to teach your child the value of money, here are a few tips for ways you can start.
Use small examples to demonstrate budgeting
Even young children can learn about budgeting on a small scale. The next time you're in the supermarket or shop, for example, show them that for the same price, you could choose several small 'pick and mix' sweets, or save up for a larger chocolate bar.
Consider how to show the value of money in 'real life'
Knowing how to teach your child the value of money might sound scary. But if they can grasp the example with sweets we just mentioned, teaching the value of money in real life might just mean pointing out how much things cost when you're doing your weekly shop.
When you're doing a weekly shop, show them how many apples you can buy with a 50p piece, or how many pounds they'd need to save up to buy a toy. Putting even a small amount of money in context can help to teach your child the value of money in the real world.
Discuss needs and wants
The difficulties of recent times might have led to your children feeling a little bit fed up. With food shortages and self-isolation dominating most of the last year, they might not understand why they can't do or buy the things they want. You could take the opportunity to discuss that when times are tough, you have to prioritise needs over things that are nice to have.
Learning about money and finances when you're young can help to encourage good financial habits. At Lowell, we believe that being open and honest about money and debt can help to remove the stigma around debt, and help to improve mental health for anyone who is struggling with financial issues.
For more information about mental health and money, check out the Lowell blog, or take a look at our range of debt guides about all things debt-related.
Published by Libby Davies 10th May 2021