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Posted by: savingforkids     

The average pocket money rate for some families has finally hit the £1,000 a year level, according to a poll of 11,000 parents.   This puts it only just below gas and electricity bills in a family's expenditure.   The average amount given to 12 to 18-year olds who buy their own clothes is £19.77 a week, which equates to £1,028 a year.   Those whose clothes are bought for them get a typical sum of £9.50 a week (£494 a year).   Meanwhile those 12 years old or younger get, on average, £3.30 a week (£172 a year).   However only 65% of parents with children under 18 regularly give their offspring pocket money.   A quarter of kids don't get a regular income at all while the remainder either get handouts based on chores completed or via a job.     Of the 7,605 MoneySavingExpert.com poll respondents who have children of any age under 18:   1,915 (25%) don't give regular pocket money   587 (7%) only give pocket money if chores are completed   124 (2%) have teens who do work to get their pocket money   1,614 (21%) give up to £2.50 a week (£130 a year)   2,687 (35%) get between £2.51 and £12.50 a week (£130 and £650 a year)   678 (9%) get over £12.50 a week (£650 a year)   Martin Lewis, MoneySavingExpert.com creator, says: "With income of £1,000 a year some teens are now serious consumers. Used right, pocket money is a great tool for teaching the fundamentals of how to budget, when to save or spend, and making sure you get the best value for things.   "Yet how it's given can make a big difference. Just doling it out each week for no reason is 'trust fund teaching', creating a culture of automatic entitlement. Far better is to give the money as a reward for tasks done.   "But even then beware not to award for things that are expected anyway, such as cleaning bedrooms. Rather reward for tasks which benefit the whole family."

Tags: Pocket, Money, Kids, Average, Children, Parents
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Posted by: savingforkids     

Once children reach the age when they beg for every toy imaginable, it is time to help them learn a bit about money management. There are two schools of thinking when it comes to pocket money for kids -- chore based earnings or simple allowances.   Chore Based Earnings Some parents believe that children should be required to earn their pocket money by doing chores so that they will begin to appreciate the value of money. When work performed equates to money, children learn quickly to prioritize their desires. It is much easier to request a new toy when mum and dad are picking up the tab; when a child must earn part (or all) of the money and save for wanted items, they begin to view money in a whole new way.   Chore charts are probably the easiest way to organize and track chore based earnings. Parents can use a simple calendar to keep track of completed chores and their values. Payments are usually made each week upon the completion of agreed tasks.   Allowances While some parents prefer to see their children earn their spending money, others are uncomfortable with the idea of paying their kids to perform assigned chores, preferring that the children learn to help out simply because they are part of the household. These parents feel that they should not have to pay their children to do things that they should be doing already. There is nothing wrong with this line of thinking and these same parents can still teach their children good money management skills by giving them an allowance. Allowances are usually paid weekly, with the amounts varying based on the age of the child.   Bonuses Regardless of their feelings on whether or not their children should have regular tasks assigned to them to earn spending money, many parents do occasionally offer to pay their children for some things. Many parents offer monetary rewards for maintaining good grades in school, helping with large projects such as cleaning the basement and organizing the garage, or babysitting younger siblings. No matter where children get their money, it is important that they be taught to use sound judgment in matters of money.   Spend, Save, and Donate In order to raise kids that will someday be fiscally responsible adults, it is important to guide them when they first have money of their own. Explain the difference between "wants" and "needs." Also, be sure that your children understand that living within a budget can sometimes mean deciding to get one item or another and that when funds are limited, you can't always have everything right away -- sometimes you have to save up for things that you'd like to buy.   One of the simplest ways to show children how to save is by using four jars. Label each one with one of the following:   Spend Save / short term Save / long term Donate Once the jars have been set up, explain to your children that they'll need to decide how much of their weekly money will go into each jar. They must allocate some to each and it is best to decide on percentages before they ever get their first "paycheck." Be sure to explain what the money in each jar will be for and help your child to decide on reasonable percentages.   Money in the "spend" jar is for them to spend freely on anything they wish. The "save / short term" jar holds funds for clothing, toys, movie tickets, or anything else that they enjoy but do not have enough for using only one week's allowance. "Save / long term" refers to big ticket items that the child will have to save for over a longer period of time. Examples of long term savings goals for kids may be a bicycle, designer clothes, large toys, a car, or a college education. Lastly, teach children to set aside some money to "donate." It is important to be socially responsible, so begin early by encouraging your children to allocate a portion of their income to help others. Discuss ways that they can use this money and then help them to follow through when the time comes.

Tags: Pocket, Money, Kids, Children, Allowances
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Posted by: savingforkids     

Urban music star Tinchy Stryder has drawn on his own experience to advise youngsters to invest money wisely.   The artist, who is 22, funded his first album partly from selling clothes and visited a school in London to encourage others to manage their money safely.   Money advice is becoming more of a feature in the curriculum although there has been criticism of the level of personal finance education.   The pop star said he wanted to promote the saving message.   He said: "From however young you are, to however old you are, and whatever you have got, do not always spend your last penny,".   "I believe, whatever age you are - even kids with piggy banks - as long as you are aware of money you should understand how saving money is really important in life."   "Always put some money away. I've learnt from that."   His appearance at a London school was part of a publicity drive for education materials for teaching personal finance, called the Government's My Money programme, a £10 million scheme which aims to encourage schools to teach children about money in a way that's relevant to their lives.   "When I was at school we did not get taught about managing money, but it is important to sit them down and talk about managing finances," said the star, whose hits include Number 1.   "When you come out of school, there is a whole new world and investing and things makes sense. I never knew that when I was younger."   The school visit would help young people associate good financial management with one of their heroes, according to Monica Cross, the principal of St Matthew Academy in South East London, which hosted the visit.   "It is not just us [teachers] who are saying it, they accept it is people like Tinchy, who they have as role models, who are saying it is really important to understand money and finance and to develop personal finance habits," Mrs Cross said.   "He is a role model, not just in terms of music."

Tags: Schoo, Money, Teach, Tinchy, Stryder
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Posted by: savingforkids     

 
Young adults are now relying on their parents to fund their day to day living expenses and service debts, a new report has claimed.

Young people, struggling to get jobs in the aftermath of recession are having to rely on their parents more than ever to make ends meet.
An annual Scottish Widows Savings and Investments report has revealed that nearly half of parents with children have given or loaned money to their adult children or grandchildren. The so called 'savings sap', a term coined to describe this effect, has gone up to £13,660 from £11,800 last year.

This means those parents able to give are being forced to give more as their children struggle.

Parents often help finance their children through University education or help buy a first car but the report highlight the alarming trend of parents giving money for day to day living – cash to cover daily expenses and handouts to service mounting debt.

The report includes the worrying statistic that over a third of offspring needed parental handouts to pay off their debts.

One in ten parents helping their children have increased their own level of debt, going as far as mortgaging or remortgaging their property to do so. Handing money out to their kids has also led over a fifth (22%) of parents to cut back on day to day spending.

Iain McGowan, savings expert at Scottish Widows, said: 'Our research highlights the "double whammy" of the recession where children are relying on their parents.

'On the one hand, "generation Y" is looking ever more to its parents for help as it struggles to get jobs, credit and mortgages - and to clear debt.'

'At the same time, the "Bank of Mum and Dad" is not as readily available as it once was, often for the same reasons. This means that fewer parents can afford to give or loan money, while those who can, are being asked to provide more.'

Savings are being dipped into at an incredible rate and stretching parents to the limit. The report shows that the overall savings have decreased to £64.3bn, down from £72.5bn last year. In this credit hungry environment with credit being taken out by young adults with ease, it is the parents who are having to provide a helping hand and dig deep into their pockets.

The extra handouts can also affect the parents in retirement, meaning they may have to work longer or make retirement savings stretch further.

Mr McGowan said: 'The earlier parents and children get into the habit of saving the better. Saving regularly into a tax efficient savings vehicle such as an ISA can make a big difference.

Tags: Kids, Parents, Money, Saving, Struggle
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As children get red packets from relatives during Chinese New Year, it is a good chance for the parents to teach them how to manage their money wisely, according education experts.   “Children should learn how to save and manage their money since they are young,” said Wu Ching-ji, minister of the Ministry of Education. “Managing their lucky money from Chinese New Year is a good start. They should plan how they want to use the money. They should have savings instead of asking their parents whenever they need to buy things.”   Professor Edward Chow of Department of Finance in National Chengchi University said children of different ages should learn different things about money so that they can build up a good concept of financial management.   Since they are young, parents should teach their children to keep track of their expenses, said Chow. They can open accounts for the children in the banks under the children's names and let them keep the bankbook. Chinese New Year is a great opportunity for the children to put theories into practice, he said. Parents can discuss with their children of how to divide the money into difference uses, a part for saving, a part for buying necessities and a part to spend on the things that they want. They can set up systems to encourage the kids to use them on useful purchases.   Chow gave an example, if the children set aside NT$100 to buy books, then the parents can subsidize the same amount of money. For things that the parents do not encourage the children to buy, they can let the children pay themselves. However, it is better for them to make their own decisions than to ban them from buying certain things.   If the money the children saved reached a certain amount, and when the children are old enough, parents can teach them to invest in funds, and make them understand that all investments carry risks, Chow said. The custom of giving out red packets to children actually started in less than 100 years. In the past, people gave red packets to elders to show their respect in any time of the year. Not until around 1900, people started to give red packets to children to show their love and to wish them good luck.

Tags: Kids, Money, Teaching, Chinese, New Year
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Posted by: user no longer registered     
 
Whether you want to save up for a cool video game or your education, you're going to need a financial game plan. Here is an explaination on what options are open to you.
 
Get a Savings Account
If you're serious about saving your money, keeping it in piggy bank will help to some degree. Over time, the money you get will be built up which is the same as if it is put into a savings account right? Not necessarily.

The banking system requires you to put your money into a bank or a building society where it is safe and secure. The money you put in is then taken by the bank to invest and trade with (something you can do yourself if you look below at Advanced Options.) The banks use your money to make more money and from this, they pay a small amount of interest to you, which is their way of saying thank you for letting us use your money. This way, money that sits in a saving account automatically grows by itself and the more you put in, the more interest you get out.

It's time to start a savings account. This account should be separate from your debit account, which is where money is placed so you have easy access to it in order to spend it. Look for a bank that offers a higher interest rate and also make sure they don't charge you a lot of service fees. In fact, a lot of banks don't charge kids any service fees at all, so shop around to find the right bank for you. 
 
 
Start Saving Your Money Now
The next step is to start putting money in your account. Start with whatever you have, whether it's five pounds or a hundred pounds. The best thing to do is to make a saving plan. Decide how much you're willing to put in your savings account from what you get every month and stick to that plan. If you already have a debit account, most banks will be able to set up an automatic transfer every month - so if you decide you want to put £5 into your savings every month, the bank will take it from your normal account and put it into your savings account automatically. This is helpful as it is easier to save money if you stop yourself from spending it as soon as you get it.
 
 
Advanced Options: Investing Your Money (For parents saving on behalf of kids)
 
If you have a serious goal for your child and would like to invest in their happiness and future, perhaps investing your money first may be a good option. The way to do this is to invest your money somewhere where it's going to make more interest than in your savings account but be aware that these options can be tentative. Here are some options:
 
• Bonds: When you buy a bond it means you are lending money to someone (for example, your government or a company). With a bond you get a higher rate of interest than with a bank account, but you have to wait longer to get your money back (sometimes 10-15 years, hence the term bonds). This is a long-term solution and may be a better alternative to a savings account for people with very young kids. If you plan on relinquishing the right to a savings account to your child when they turn 18, bonds will not only earn more but will also be no different from if you kept a savings account going for a long time. Also, consider bonds as a great alternative to your child's, nephew's, niece's or grandchildren's first birthday. That way, you won't need to get them anything when they turn 18! Remember to shop around and keep an eye out for the two key factors: interest and maturity period (the time you have to keep your investment). Also remember that a higher maturity period will not always get you the best interest on your money, so shop around.
 
• Stocks: When you buy stocks you are actually buying a small portion of a big company and are entitled to a share of the company's revenue, the percentage of which is dictated by how much stock you hold. You can often make a lot of interest in the stock market as you will have a small income from the tiny share of profits the company you invested in makes; but you also run the risk of losing money too. If the stock goes down, the money you get back from your investment goes down too. It is best to have some guidance on what is predicted for the stock market so any knowledge of trends and consumer habits are likely to get you playing a very interesting gambit should you decide to invest in stocks. Many people buy stocks in order to sell them when their values increase, which is dependent on how much money the company invested in makes. As the popular saying goes however, what goes up must come down so always assume that either could happen. This is how the banks make their money and if you are good at it, you may earn a lot more than you thought you could. You are however running the risk of losing everything so think about this option carefully...
 
• Mutual Funds: Mutual Funds are like investing on your own, but instead you pool your money with other people and invest in lots of things (stocks, bonds etc.) with the help of a financial manager. This is a good option as you have a professional doing all the hard work, and it is less risky since you don't have all your investments in one place.
 
Tags: Saving, Kids, Finance, Investment, Future, Secure...
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Tags: Kids, Asda, Dundee, Money, Christmas, Financial
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1. Talk about money with your child - Children often see adults spending money, but the part they don't see is when monthly bills are paid off. As a result, children can have a skewed perception of how money is managed. It helps to sit children down when you are doing your financial chores and show them what bills are being paid and how much they cost, so they can get a balanced view of what the proper management of money actually involves.
 
2. Give your child a preset amount of pocket-money - An allowance will allow children to practice saving and spending money, and is a great way to teach them how to be responsible with their money. Keep in mind that losing money is part of the lesson most children go through in order be more careful in the future, so don't be harsh on them if they do.
 
3. Give your child the opportunity to top-up their pocket money by earning it - Why not create opportunities for your child to earn extra pocket money by setting them tasks to perform? Tasks such as making the beds or laying the table. Make sure the amount you give them is reasonable for the task they perform.
 
4. Teach your child not to impulse purchase - Children can get very excited when they see something they really want. Talk to your child and explain that if they really want something, they will have to wait and save up themselves for it. Put a time frame on it, for example, two weeks. This teaches your child to think properly before making a purchase. It also saves you money! Once the child has set their heart on something, teach them how to shop around to find the best price.
 
5. Help the environment and your child at the same time - It is a good habit for children to learn how to conserve energy and water, while saving money at the same time. A system of green points can be set up whereby for every act of conservation, the child will be given a small amount of money such as 10p. This way, your child will understand that conserving energy saves money, money that they can spend on themselves (a lesson that more adults also need should take into account).
 
6. Teach your child to plan and calculate costs of buying things - When your child wants a particular item, such as a bicycle for example, take your child to the bicycle shop and price the item. Once the price is identified, sit down with your child and calculate how long it would take to save for that purchase. This activity puts into perspective the value of the money.
 
7. Take your child with you when you go for the weekly shop - Get your children involved in identifying grocery items and how much things cost, give them tasks such as finding the best value of a particular item. Children tend to enjoy shopping in general when it is made into a game that they can participate in. This also distracts them from shiny sweet wrappers and numbs the longing for something sweet then and there.
 
8. Involve your child in your own savings goals - If you are putting money aside for that dream appliance or car for example, include your children in the process. This activity demonstrates the importance and skill involved in saving money and also shows how similar the experience is with their own saving tasks.
 
9. Encourage your child to think long term - Help your child develop a few goals to aim for, so for example, offer to pay towards something the child wishes to purchase if they can plan ahead with how they are going to save up and make the purchase and what benefits they can list for the purchase being made. This will give them an incentive to think about the value of commodities as something quite seperate to the value of money.
 
10. Set up a savings account for your child - Setting up a bank account for your child will teach them about rewards and savings. If the amounts we are dealing with are too small for a savings account, make one up yourself. So the child will give you the money and for every week that money goes unspent, an extra allowance is added to the pot. This is crucial to making your child think about the things he or she really wants to buy and exercise restraint when it comes to some menial purchases that could be exchanged for more money; a better long-term saving strategy.
 

Tags: Money, Value, Teaching, Responsibility, Saving, T...
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The chances are that when you were a child, if your Dad yelled at you to turn your TV off, he was more worried about the cost of electricity rather than its draining effect on the planet's resources.
 
These days, we all know that conserving our energy is essential to slow down damage to the environment. But it turns out that Dad was right too. For many parents living through an economic downturn, saving cash by turning off unwanted lights is just as appealing as helping save the planet.
 
In an increasingly technologically advanced world it's natural that children have access to power for items like computers and mobiles. But it's also important that they don’t take that energy for granted. Teaching kids about conserving energy is essential if you want them to grow up green – so take a glance at our tips below and start them on the road to cutting energy (as well as your electricity bill).
 

 Teach Kids Where Energy Comes From
 
Together as a family, search in an encyclopaedia (or on the net) for answers about where your energy comes from. Do they know how coal is produced? Do they understand what kind of energy the cooker uses? Find out together – then let your children know that some energy supplies are finite, and they’re running out fast.
 
Family action point: If you haven’t already – switch your energy to a green supplier. While many energy companies claim to use renewable resources, others can offer 100% green coverage.
 

 Talk it Out
 
Call a family meeting and discuss practical ways that you can save energy around the house. Put a big piece of poster paper in the middle of the table and get your kids to write down their ideas in magic marker. Afterwards put the poster on the kitchen wall so everyone can see it. Remember that this includes adults too! So, if your kids resolve to shut down the computer an hour early, promise to leave your mobile off for an extra hour every night, then see if everyone can keep their energy-saving promises - and if so celebrate with a fun family treat.

Family action point: Don’t promise too much to start off with! It can be more difficult than you think to wean yourself off some addictive energy-guzzling devices.
 
Have a Switched Off Evening
 
If your average evening sees you working on your laptop while the kids are in the front room texting on their mobiles and watching TV, then the chances are that you could do with a carbon detox. As a family, commit to one night a week where you all pledge to switch off the TV and shut down other energy-guzzling equipment. Try and choose a family-friendly activity you could all do instead. Maybe it's the perfect time to offer a ‘homework forum’ where you can help the kids with your homework. Though they may miss the TV, don’t forget that a story read aloud as a family can be just as bewitching.

Family action point: If it's still warm outside then why not eat in the garden or go for a family ramble. Both are fun – and the only energy you use will be your own!
 

Tags: Saving, Energy, Kids, Children, Teaching, Advice,...
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Posted by: Sub-Editor     

 
SAVING MONEY FOR KIDS
 

Lets face it -- its expensive having kids.  From the beginning, buying clothes and diapers, to later in life paying for school and college, can make it difficult to save money.

To help you save money if you have kids, here are some spending and saving tips and advice.

Also, along with saving money, it's critical to learn good budgeting skills.   See our budgeting section for some helpful teaching and learning worksheets and lessons.
 
  
 SAVING MONEY TIPS

CUTTING COSTS ON CLOTHING
 

Clothing is something you will be spending a lot of money on, and especially for younger kids, they will outgrow it quickly.  So to save money on clothing, try to find discount clothing stores, or secondhand clothing shops for your child's clothing.  Also, try swapping clothes with friends and family who have older children.
 

SAVING ON BABY ITEMS
 

A new baby will need a crib, car seat, stroller, and more baby goods.  Again, check second hand stores and hand downs for these items.  However, don't cut corners where safety is involved.  For example, in the case of a car seat, you want to make sure the seat is very new and passes all current safety regulations, and has not had any recalls.
 

KIDS AND TAX SAVINGS
 

Having children changes your tax situation.  You will receive a tax exemption for each child in your family.  Also, you may want to research putting investments into your child's name, since money they earn can often be placed into their tax bracket instead of your own.
 

SWAPPING TOYS
 

Instead of buying lots of expensive toys, consider buying fewer toys, and then swapping them with friends and family.  Kids quickly lose interest with their toys, but often have a greater interest in new toys.  By swapping, you can increase the frequency of new toys without spending additional money.

Tags: Savings, Money, Kids, Children, Advice, Tips
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