Teaching children about money helps them to prepare for life in the real world. Managing money is a vital life skill and if kids develop this from a young age, it will help them in adult life. Our tips can help you teach your kids about money.
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Life Moments
Banking for kids
Teaching your children the basics
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1
Open a savings account
Saving for your child can be a great help for their future and encourages them to understand the importance of managing money.
One way to do this is by opening a savings account.
Take a look at our First Saver account
Teach your kids to save with our First Saver account. Eligibility criteria apply. You must be 18+ and opening the account in trust for a child under 16. Both you and the child need to reside in the UK, and you need to have a Royal Bank of Scotland current account.
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2
Earning pocket money
Teach children that you need to earn money before you can buy things. Show them some household bills and any Direct Debits and Standing Orders you've set up to pay them, you could even show them your pay slip.
Giving pocket money can help them learn about earning money, and you can give them tasks to do at home to earn this.
An account for their pocket money
Our Revolve account can give kids a start managing their money and they could earn interest on their balance. This account is available to 11-17 year olds who are UK residents. 11-15s must apply with a parent or guardian who has a Royal Bank current account.
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3
Contactless and cards
In an increasingly cashless world, it's important to talk to your kids about contactless cards and mobile banking.
They'll also need to know about storing card details on their mobile phone or other devices to make payments via Apple Pay and Android Pay. Without seeing money being exchanged, it's harder for children to understand how much things really cost.
As your kids get older it's also a good idea to talk to them about shopping online and how to do so safely.
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4
Teaching teenagers to budget
You can get your teens to plan and budget for an activity they really want to do to help them learn about managing their money.
Show them how to set a budget and work out how much each part will cost. This will help them see that budgeting helps their money go further.
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5
When should they borrow money
It's a good idea to talk to teenagers about credit before they get to 18. Explain when it's a good idea to consider credit, when it's a bad idea and why it's better to save up and use cash when you can.
Make sure that your child understands they will need to be able to make monthly payments for any money they borrow.