Research shows that by age 7, children’s attitudes about money are well developed*. This makes it even more important to start building good money habits as early as possible and encourage the younger generations to start thinking about how the world of money works.
Whilst usually we would support the local schools by going in and delivering Financial Education sessions to students in person, the pandemic has meant we have had to rethink about how we can still support our young people in a different way.
Led by one of our top Wealth Managers, Liam Danaher, Money Month is a series of Financial Education videos that have been published onto our FFM You Tube Channel to help all young people think about a number of different topics surrounding finance.
We caught up with Liam to ask him why he was so keen to create ‘Money Month’ and the importance behind it…
*Source: The Money Advice Service, 23 May 2013.
What is ‘Money Month’ and who is it for?
‘Money Month’ is a series of interactive videos covering some of the fundamental principles of financial education. They are really aimed at students but provide valuable information for everyone. We have 4 videos with different challenges included to get young people to start thinking about money and what it means to them. So far, we have covered:
Episode 1 Goal Setting and Saving
Episode 2 Money and Budgeting
Episode 3 Borrowing and Lending
Episode 4 Entrepreneurship
What motivated you to put this together?
We have been wanting to do this for a while now. We already have an extensive education programme at FFM working with over 15 schools across Cheshire which is something we are really proud of. Teaching financial education from an early age can instil financial confidence which ultimately leads to better financial capability to help make the most of your money and in turn improves your well being and financial future. I already get so many of my clients asking if we have any resources for their children to understand more about money and these resources will help to get the conversation about money started which is great.
Financial education needs to start at home and whilst schools do a good job at covering most topics, here at FFM we believe talking about money needs to become part of everyday life at home.
Why is financial education for young people so important?
From an early age when kids get pocket money and money for birthdays, Christmas or special occasions, behaviour around money is learnt. Learning about money is an essential life skill and having more knowledge increases the chance of better decisions being made.
I know that many young people will be going off to university in September and will be taking out a student loan. How many will really know how the student loan system works?
It is so important that young people understand how specific financial products work. This includes credit cards, mortgages, savings accounts, and pensions along with understanding how the tax system works.
What advice would you give to parents wanting to talk to their children about money?
1. Start investing early
Taking small steps by investing little and often from an early age can make a dramatic difference to a young person’s future, giving them a head start towards financial security.
2. Make learning fun
It is a stressful time for parents at the moment, many of whom are juggling home-schooling – often for the first time – with work and managing the household. However, there are a number of fun, quick and simple ways to start teaching children about money.
This is why we have tried to make ‘Money Month’ as interactive as possible
3. Lead by example
Ensuring people have the ability to plan, grow and protect their financial future and achieve financial wellbeing in a world worth living in is so important. It is equally as important to be able to share and teach these skills to our children, so they can grow up with a sense of confidence towards money and know how to make informed decisions throughout their lifetime.
Educating young people about the advantages of budgeting, saving, investing and giving back is a life skill that needs to be taught early on. In doing so, we can all take a moment to consider whether we are leading by example with our own finances and, if not, see where the opportunities are to make adjustments.
4. Increased emotional and financial support
It’s likely that your children will need extra support during these unprecedented times, whether they are young and home from school, or older and back from university. Thinking about money as a family is a great place to start and has the added benefit of introducing younger generations to financial planning. The impact of coronavirus can prompt us to teach young people important life skills such as how to adapt to current circumstances and avoid financial strain, while still saving for the future.
5. Set a goal
Whether it’s buying a first home, paying for further education or travelling the world, setting a goal and putting money away to save for this early on in life can make it achievable. The longer the investment has, the greater the benefit will be from potential year-on-year compound growth of reinvested returns
It is hugely empowering to take control of the elements of your life that you are able to, particularly at the moment, and teaching tomorrow’s generation the correct behaviours now when it comes to money can help to set them up for the years ahead and a life of financial wellbeing.
What’s next for ‘Money Month’?
We have had some amazing feedback from schools, clients, friends, and business partners which has encouraged us to put together more lessons on financial education. We hope that more schools will be able to use the resources and as we continue to build our education programme, we hope to get more and more people talking about money.
All our videos can be found on the Franklyn Financial Management You Tube channel. To watch episode 1 now, click here.
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