Family finances: How parents can start cash conversations with youngsters

Children are often extremely perceptive when it comes to understanding what's going on within a family - and sometimes this means picking up on worries about their parents' finances.

One in three (33%) children aged between eight and 15 worry about money themselves, according to a new survey.

The research, from Halifax, found that boys are particularly likely to worry about cash, with 37% saying they have this concern, compared with 30% of girls.

Halifax also carried out a survey of parents which showed many are clearly aware of their children's concerns.

Some 33% of parents admitted they think their children worry about money - the same percentage as the children who expressed concerns about finances.

Giles Martin, head of Halifax Savings, suggests children's money worries are likely to be a reflection of young people absorbing their parents' anxieties about cash.

Indeed, nearly nine in 10 (88%) parents surveyed say that they worry about money themselves.

'The good news is that parents are now feeling more confident in teaching their children about finance'

Some 91% of mothers worry about money - as do 84% of fathers, the research among more than 1,200 children and over 500 parents found.

However, the good news is that parents are now feeling more confident in teaching their children about finance.

More than four in five (83%) say they feel comfortable talking about money with their children, up from three-quarters (76%) when similar research was carried out in 2015.

Youngsters are also keen to know more about pounds and pence, the study found.

When it comes to improving their knowledge of banking, almost two-thirds (63%) of children want to learn about bank accounts and more than a quarter (26%) want to increase their knowledge of credit cards.

Giles says: "It is encouraging however, that parents are now more comfortable talking to their children about money.

"With nearly two-thirds of children keen to understand more about banking, it is clear these conversations are appreciated."

So how do you get started when it comes to broaching the topic of money with your child?

Giles says: "It's never too early to start talking to children about finances.

"It helps them to understand the basics of money management such as saving, budgeting and spending responsibly. If kids develop good financial skills from an early age it will help equip them for adulthood, and will establish good money habits for life."

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Get into the savings habit. Encourage your children to save regularly. You could even get them involved in choosing a savings account and spend some time explaining what some of the banking terms means.

Develop a savings plan. Saving money is often as hard as earning it. Encourage your children to save some of their pocket money. If the family budget allows, you could even consider matching every pound deposited to help give your children an added incentive to build up a savings pot.

Talk to children about bills. When you receive bills, this can be an opportunity to explain all the different outgoings that cost money and how you cover the cost from your earnings. This will help create a connection between time spent at work and money - and might even make them think twice about leaving lights on.

Get them involved in managing the family purse strings. Take them to the supermarket and discuss how to pick out the items you need. Comparing prices will help them better understand what "value for money" means, as well as helping them appreciate the cost of everyday items.