Teach kids how to save and budget

Parents need to teach their children how to budget if they want to give them the skills they need to earn the best savings interest rates.

Yvonne Goodwin, managing director of Yvonne Goodwin Wealth Management Ltd, said that many young people only learn to live on a budget when they go away to university, but at that point they may be too excited to listen to financial reason.

However, as the price of tuition fees will soon rise to £9,000 per year, it is essential that students do not end up in even more debt.

She suggested that the best way for children and young people to learn about money is to actively earn and use it, claiming that if teens have a Saturday job and start saving for themselves at the age of 15 they will learn the value of money.

"If at home there is a good savings discipline and their parents are planning in advance to help their children with the extra costs at university such as accommodation and food, then this is real money that has been hard earned and hard saved and usually gives more of an incentive to spend it wisely," Ms Goodwin explained.

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2011-09-26 13:02:18 © Moneyextra.com