The summer holidays are an expensive time for parents. Recent research by American Express showed that the average family with two children expects to spend £640 to keep their children entertained over the summer holidays.
So, how can families budget and how can they encourage children to make their allowance or pocket money go further over the break?
Whether your children receive pocket money or a set allowance, it can be hard for them to budget this when there is so much free time and so many more opportunities to spend.
MMM teamed up with Nimbl’s founder Clint Wilson, which provides pre-paid debit cards for children, to put together some top tips on how to help children manage their money.
- Sit down with your children to run them through how much their allowance or pocket money breaks down to on a weekly, or maybe even a daily basis. This will give them an understanding of what they have to spend and what they may need to save for days out and special events.
- If you have a holiday planned, then it’s worth agreeing whether their allowance will cover holiday spending as well, or whether you have plans to give them additional spending money – to cover things like souvenirs and ice cream – so that they can take that into consideration. Activities on holiday can be one of the biggest drains on your holiday fund. So, why not include the children in the planning and get them to research what free activities might be available, like museums, guided tours or kids clubs, to make the holiday budget go further?
- Whether you are going on holiday or not, giving your children the option to do chores or jobs around the house is a great way for them to raise extra funds to see them through the school holidays. Parents’ favourites include house cleaning, car washing and fence or garden furniture painting and you can work out set costs for each of these activities. Not only is it a good way to get your children to learn the value of working to earn their allowance, but it also keeps them occupied! Who knows, they might even want to carry on these activities once they summer holidays have passed.
- While the children are around the house it can be a good opportunity for them to have a clear out of things they don’t need any more that could be sold to raise some money. A car boot sale can work well and for bigger or higher value items you could help them to list on eBay – particularly if they are saving up for something new.
Whatever your plans, there are many ways of getting your children to understand the value of money and to learn about budgeting. While school may be out for summer, the financial lessons learned early on can last a lifetime.
Nimbl is a prepaid debit MasterCard® and smartphone app that supports financial freedom for young people. It aims to empower young people with financial responsibility and provide parents a safe and secure environment to support their children in becoming financially confident and independent.