School Holidays - the perfect time to teach kids about money

KIDS & MONEY: Fill in some time these school holidays and teach your kids about money

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Looking for ways to occupy your children these coming school holidays? Why not use the time to help your kids learn money management skills.

The Retirement Commission's free, independent website, Sorted.org.nz has a special section called Kids & Money. It's devoted to helping young people prepare for the financial decisions they'll make as adults.

Kids & Money includes nine fun, interactive online games aimed at children aged from five to 12, where they'll learn basic money principles - probably without even realising they're learning!

You don't have to be a financial expert to help your kids. These eight tips show how easy it can be to introduce your children to basic money management.

1. Encourage your kids to save for things they want.
Have your child divide what money they receive between jars for long-term savings, short-term savings, money to spend, and money to give away. They can then watch the jars' contents grow. Or open a bank account for them. This way they learn that material goods don't come for free, and that there's a trade-off between spending money now and saving it to buy something later.

2. Use everyday encounters to help kids learn about money.
Don't be shy to talk about your budget with your child. Show them bills and the withdrawals on your ATM receipt or bank statement.

3. Explain interest.
Your kids need to learn that they earn interest on money saved but must pay interest on money borrowed. A bank account will let them see what interest they've accrued on savings ? or you could pay them interest on money saved at home.

4. Be aware of money personalities.
Is your child a saver or a spender? It will help you learn how to help them, so have them complete the Kids' Money Personality Profiler on Sorted.org.nz.

5. Talk about money with your kids.
It's from discussions about how much money you make, what that needs to be spent on, and why they can't have a new toy, that children learn about the value of money.

6. Be consistent.
When you've made a rule or an agreement about money with your kids, keep to it! Don't give in and buy that toy - kids need to learn that when money's gone, it's gone.

7. Keep records.
Encourage account-keeping, so have your kids keep a written account of deposits, withdrawals and interest. Or choose a bank that has a passbook.

8. Find out what's happening at school.
Schools have a role in helping kids learn about money, so ask what they've already been taught so you can build on that.

Parents, teachers, or kids wanting to learn more can visit the Kids & Money section at Sorted.org.nz.