How to talk to your children about money this Christmas

I find that often, people think teaching kids about money is about sitting them down and taking them through how to draw up a budget, teacher-pupil classroom style.

- TALIA LODERICK

And while that is absolutely useful, we forget – or are unaware – that so much of what we learn is through modelled behaviour.

Money habits formed by seven

Research carried out in 2013 by the government-backed Money Advice Service (now known as MoneyHelper) and behaviour experts at Cambridge University found that adult money habits are formed by the age of seven. Children learn from their parents and carers’ relationship with money, both consciously and subconsciously.

Consequently, as a parent and carer, how you manage money influences how your children will manage money as adults. What is your behaviour teaching the children and young people around you about money this Christmas season?

Presence over presents

A phrase I like is “presence over presents.” I’m all for spending money you can afford on the things that matter to you and enjoying every purchase without guilt, shame or regret. But I know how easy it is to go over the top at Christmas, to keep up with the Joneses.

Nowadays, we also have to contend with strangers on social media displaying their consumption for all to see and establishing new normals for stuff, spending, and “this is how we celebrate”. The result? A Christmas overspend and starting the new year with a festive financial hangover.