Parents always want the best for their children, especially when it comes to planning their futures. Getting your children thinking about money early on, you’re helping to safeguard their financial futures. Below, Andrew Megson, Executive Chair of My Pension Experts shares 5 ways to get your children thinking about their future finances.
1) Begin with budgeting
Giving your children weekly pocket money or a monthly allowance could be a great way to get them thinking about budgeting. Whilst it may be tough saying “no” to your children if they ask for extra money, you’ll be teaching them the valuable lesson of spending discipline, setting them in good stead for when they have to budget their future salary.
2) Saving a little bit now adds up in future
It’s important for your children to realise the significance of saving, whether it’s for a treat at the end of the month, or just for a rainy day. Encourage your children to save a small amount of their pocket money or allowance each week. Getting them in the habit of saving early on will put them in practice for when they save into their pension when they grow up.
3) Show them the joy of a good deal
At My Pension Expert, we are always looking to get customers the best deal possible on their retirement income. However, your children don’t need to wait until they grow up to understand the satisfaction of a good deal. Get them thinking about better deals as early as possible by explaining to why you went for the Buy One Get One Free offer in the supermarket. This will help them understand why shopping around for a better deal can be very satisfying and better value for money.
4) Explain that pensions aren’t the be-all and end-all
Pensions can be a great source of retirement income, but it is important that your children understand that there are other options out there. Teaching them about retirement alternatives, such as annuities, will help them understand all options available to them. This will mean that, when the time comes to make decisions about retirement options, they have the knowledge to choose the best option for them.
5) Make sure they’re not afraid to ask for help
We aren’t all financial whizzes, so it’s essential that your children know that they don’t have to muddle through their finances alone. At My Pension Expert, we have a team of financial advisers, who help clients understand all their retirement income possibilities and help them pick the right option for them. Make sure your children know that expert advice is out there, should they need it.