How old were you when you started to understand the value of money? Financial education has been on the UK's national curriculum since 2014, but critics say there are still significant gaps in how, and when, students get access.
In a survey of 2,000 students for The Young Persons' Money Index 2019, compiled by the London Institute of Banking and Finance, 82 per cent said they would like to learn more about money at school and that they still gained the majority of their knowledge at home.
Having an appreciation of money helps individuals manage their day-to-day lives successfully, and avoid building up unsustainable levels of debt. Being comfortable financially is also important for mental wellbeing.
It's never too early to teach children about the concept of saving, debt and investing. So we asked financial advisers, parents and other money experts for gift ideas that could help children understand the concept of money. Below are their top suggestions.
Monopoly
Monopoly seems to be a clear favourite when it comes to games that help teach children the concept of money. The board game highlights the importance of having a regular income and exposes the risks of going on a spending spree without having an emergency cash buffer in place. It also teaches valuable negotiation skills when it comes down to trading properties.
When considering whether to invest in a property, players have to weigh up the cost, potential income, the likelihood of negotiating with other players for the rest of the set, and whether they have enough cash to truly afford it.
There's also a children's version of the game, which is a reduced version of the adult game and can be played in a faster amount of time. Chris, a father of two, says: "I play the kids version of Monopoly with my two and four year-olds, it's great. I prefer it to the actual version as it is so much quicker. One time last week I only managed halfway round the board before my four year old bankrupted me."
Another option is Monopoly Deal, a card version of the board game which can be played in 10-15 minutes with the aim of collecting at least three complete sets of properties.
Piggy bank
A piggy bank introduces children to the concept of saving (Photo: PA)
A good old-fashioned piggy bank is another favourite among parents, with some recommending buying one that doesn't open. It introduces children to the concept of saving – and if it's a clear piggy bank they'll be able to see exactly how their money is growing inside.
Parents who can afford to give their children pocket money overwhelmingly give it in cash. According to the latest Pocket Money report from Halifax, 84 per cent of parents pay out pocket money in cash (although this may have fallen this year with the coronavirus pandemic causing fewer trips to cashpoints and shops).
The average pocket money for children aged four to 14 is £4.81 a week, according to figures from the finance app Rooster Money. However, it rises with age. The average payment for a three-year-old is £3.50 and for 14-year-olds it's almost £8.
Setting a savings target, such as a new toy or game, encourages children to budget and work toward an individual goal. You could offer extra money for doing chores around the house, which will help fill the piggy bank quicker.
"Most of our financial behaviours and disciplines come from our families so if you want to instill good behaviour you will need to practice what you preach. One technique is to start giving your child small amounts of change when shopping to buy goods, so they are involved in the whole process and understand the value attached to different items and services. Having a piggy bank is another engaging way to help them save for something in the future, but they need to set a goal that is achievable to ensure they appreciate the process and don't get discouraged along the way," says Adrian Lowcock, head of personal investing at online investment service Willis Owen.
Debit cards
For those who don't like the thought of loose change, you could give your child their own bank card. There a number of apps designed to help children learn about saving and earning money, and they come with personalised debit cards that could be a good stocking filler.
Gohenry, RoosterMoney, Nimbl and Osper are among the most popular money apps for children and teenagers. Children get their own prepaid Visa pre-paid card, and parents use the app to manage the account and set spending limits. Parents can also set up automatic pocket money transfers, and set extra tasks and chores for their child to earn extra money.
Victoria Larley, 42, uses a gohenry pre-payment card to help her two daughters appreciate and understand the concept of saving and spending.
Larley says Eve, 13, is a saver while Martha, 10, is more of a splurger, but that both girls have learnt more about managing their money since they were given the cards three years ago.
Victoria's two daughters, Eve and Martha
Larley, a self-employed music teacher from Chichester, says the girls each have a card with their own name on the front. She owns the master account, topping up the card and giving them an allowance of £2.50 each per week. The girls can earn extra money for doing chores for completing their homework or music practice.
If relatives give money for their birthday or Christmas, this also gets added to their account.
The girls get paid on a Friday and can choose whether to spend or save the money. A small amount is also donated to the NSPCC.
"It has improved their approach to saving and they now understand I don't have a limitless supply of money. The girls have been taking even more of active interest in charitable giving recently, and have had a few Facebook fundraisers, one for a foodbank, and another for the local hospice," says Larley.
Gold and silver
The Royal Mint's Winnie the Pooh coin collection (Photo: PA)
Coin collecting can introduce a sense of responsibility to children, says The Royal Mint, which sells specially minted collectible coins featuring favourite childhood characters. This year's offerings include limited-edition silver 50p coins featuring The Snowman and Winnie the Pooh. Each comes presented in a decorated acrylic block and costs £67.50.
The Royal Mint also sells gift sets of three or nine coloured coins featuring characters from Winnie the Pooh. Each coin costs £20 and they can also be bought individually.
For parents who appreciate gold as an investment, the Royal Mint also offers thumbnail-sized 24 carat gold bars weighing 1 gram that can be bought as gifts for around £60 each (currently out of stock).
Online bullion dealer BullionByPost also sells 1 gram gold bars, with prices starting at around £51.
"Fun aside, there are sound, practical reasons why gold should form part of a child's or teenager's savings plan. Firstly, gold is a safe haven asset. Unlike paper currency, gold has maintained its value through the ages, and cannot be printed on the whim of financial institutions. This makes it an ideal way of preserving wealth from one generation to another. Rare and collectible coins can become treasured family heirlooms, passed down through generations," says BullionByPost.
Game of Life
Sarah Coles, a personal finance analyst at Hargreaves Lansdown, recommends The Game of Life for children aged eight and above. Like Monopoly, it's a family favourite that has been around for decades. Players travel the path of life, making decisions, building a family, earning money (and paying some out too) and buying homes.
Coles says it requires children to make think carefully about their choices, and then to watch them play out during the game.
"Notably they learn that studying will mean it's longer before they can start making money, but it can pay off in the long run with a better-paid job. The game has evolved over the years and now you can buy property and sell it when you move into a retirement home. At that stage, a roll of the dice will determine whether its value has risen or fallen. It's a useful lesson about the risks of relying on property for retirement investment."
The game ends when all players retire and the person with the most money is the winner.
Books
A good activity book can keep a child occupied for hours.A Kid's Activity Book on Money and Finance, by Allan Kunigis, helps children learn about money through engaging activities like word searches, crossword puzzles, rhymes, quizzes, and other games. Published in September this year, it's 64 pages long and aimed at children aged 5-8.
A new release this month isA Dog Called Money, by Bodo Schäfer. It was originally a German bestseller and the English version has just been published.
The plot centres on Kira, a 12 year old girl, who wastes all her pocket money. She lives in poor circumstances, and her parents constantly argue about the shortage of money. As a result, Kira is upset by the subject of finances, and wants to avoid it. Then she rescues a stray dog, which seems to have an in-depth knowledge of finances. The book teaches that earning money is not a bad thing and can provide many fine things for yourself and others.
The book is currently sold through the Rights Company, which offers international shipping, but will be available on Amazon later in the month.
Will Rainey and his wife Astrid with their two daughters
Will Rainey, 39, is a qualified actuary who spent many years advising retirement schemes how to invest their money.
He has two daughters, aged six and eight, and invests on their behalf, paying in regular sums of money every month. Last year he quit his job as an investment consultant and founded Blue Tree Savings, a company that offers courses and company workshops to parents to help them teach their children about money.
"Money is the number one cause of stress, and I wanted to put my skills to something more purposeful," he says.
Rainey started talking to his daughters about finance from when they were three years old. He tells his children to think of money as seeds – every month Will and his wife, Astrid, plant seeds that will eventually grow into trees. The children have also been given pocket money from the age of four, and are able to choose whether they want to spend the money straight away or to save the money for a future goal.
Rainey began teaching his oldest about the stock market when she turned seven, pointing out that she owned shares in McDonalds and Apple through her junior Isa.
"My eldest really enjoys learning about the stock market and how it all links together. I explained that when you see someone eating a McDonald's burger, you are getting a small percentage of the money they paid. I aim to make learning as fun as possible. I try not to sit down and give my children a lecture. Instead I make it as visual and fun as possible," he says.
