It’s difficult to quantify the impact of the pandemic on children. Let’s face it, their lives changed beyond recognition overnight too, the regular rhythms of childhood and adolescence gone indefinitely. A survey exploring what made children feel stressed during lockdown discovered that not having enough money or food featured, alongside schoolwork, family life and other causes.* It’s heartbreaking that children are feeling these financial stresses too, but with many families impacted financially, it’s pretty inevitable. What’s important is discussing money in an open way. Talking about finances has been shown to help people feel less stressed or anxious and more in control, have stronger personal relationships, and help children form good lifetime money habits.
Now is an especially good time to get talking about finances, teach your kids some basic financial info and allay their fears. Talk to them about your household budget and what credit and debt mean. It’s important sometimes to say ‘no’ to your children about their desired purchases, as they need to learn about the balance between your financial needs and theirs. Involving them in decisions about purchases is all good experience too, so talk them through your thought process and considerations to make a wise choice.
The pandemic has shown us that having our finances in the best shape and having a savings safety net is vital. Teach your children about savings, Premium Bonds, ISAs, JISAs, and pensions. Habits formed now will set them up for a positive financial future. Remember, small, regular amounts added to a savings account, JISA and children’s pension quickly add up – a very valuable lesson.
*Children’s Commissioner, 2020
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
