This year, Talk Money Week takes place from November 6-12. It’s an annual financial awareness campaign run by the government's Money and Pensions Service to encourage us all to be more open about money.
This awareness-raising campaign also aims to help everyone understand why financial education matters. The goal is not just to help everyone learn more about finances but also to help them improve their financial stability.
How can Talk Money Week help my kids?
This year's Talk Money Week theme is: Do One Thing. Where kids are concerned, you can simply do one thing to help improve their financial well-being, whether that's start giving them pocket money or showing them how to improve their financial literacy.
If you're worried that having conversations about money with kids will feel awkward, a study published by the Money Advice Service shows the power parents possess to shape the money habits of their children.
Authored by behaviour experts at Cambridge University, the report reveals that by age seven, most children have grasped how to recognise the value of money and are capable of complex functions such as planning, delaying a decision until later and understanding that some choices are irreversible.
What is financial literacy?
Financial literacy is the knowledge and skills needed to make informed financial decisions. It includes understanding basic financial concepts such as budgeting, saving, and debt, as well as understanding how to manage money, track expenditure and delay gratification.
Why is financial literacy important?
Financial literacy is important because when you’re financially literate, you’re better equipped to reach your financial goals and avoid financial problems like debt.
"Managing money effectively demands a sophisticated set of skills ranging from basic mathematical skills to budgeting, understanding how interest works, and emotional regulation to avoid splurging. Recent CBI Economics analysis commissioned by GoHenry and Wilson Wright underlines that financial literacy raises early-career earnings prospects by up to 28% and that students with high financial literacy are more likely to start a business."
Louise Hill, Co-founder and CEO of GoHenry
What's more, talking to your kids about financial literacy doesn't have to be a deep and complicated conversation. The best way to do it is to talk about finances in everyday conversations, showing them how to put what you say into practice.
5 reasons to talk money with your kids
Twenty-four million UK adults don't feel confident managing their money.
1 in 3 Brits say thinking about their financial situation makes them feel worried.
50% of young people aged 18 to 34 years are most likely to feel worried when thinking about money.
According to the Financial Capability Strategy for the UK (FinCap), only four in ten children learn about money at school.
National Debtline and the Money Advice Trust have published a survey examining the effects of debt on 18-24-year-olds and found that almost a third have debts that they consider to be a "heavy burden".
5 ways talking about money helps your kids
Our research, conducted in partnership with Censuswide and Development Economics, found that 77% of adults earning £55,001-£65,000 per year received financial education as a child, while almost half (46%) of those who didn't are earning £15,000 or less per year, which is less than half of the national average income.
On average, people who received financial education as children save 44% more into their pension pots each month compared to those who did not benefit from financial education at school.
Over half (51%) of those who received financial education as a child have up to £5,000 in cash savings compared to almost a third (30%) of those who didn't.
Prioritising financial education could add an extra £6.98 billion to the UK economy each year.
If all adults had the opportunity to receive financial education, this could amount to an additional 76,400 businesses being formed each year – creating 123,000 direct jobs and reducing unemployment by 8%.
How to get involved with Talk Money Week
Use this week as an opportunity to talk to your children about money matters because although 53% of parents say they plan to start teaching their children about money from the age of 11, few do.
Interestingly, research from MoneyHelper.org shows that parents who are confident in managing their everyday finances are twice as likely to talk about money with their kids. So, access as many resources as you can.
Other ways to make a difference include:
Signing our petition to help make financial education compulsory in Primary Schools
A report by CBI Economics analysis, commissioned by GoHenry and Wilson Wright, called Paving the Way to Financial Well-being, shows that there needs to be more collaboration to improve the nation's financial literacy. This is why GoHenry is on a mission to #makemoneycount – and we've joined forces with money experts and industry campaigners to push for change.
You can help by signing our petition to make financial education compulsory from primary school age. This will mean that all children can develop the skills and knowledge they need to manage their money effectively in adulthood, regardless of their background.
Set a good example for your kids
Role modelling good practices around money is vital as kids watch your every move. So, use Talk Money Week to start setting them a good example.
First, review how you view your finances and let them see you act on it. For example, this week is a great time to start planning a budget. Let your kids join in when they see you at the kitchen table once a month with your laptop, spreadsheets and calculator. Take time to answer their money questions so they'll grow up knowing that talking about money is normal and healthy.
Start early with financial education. Play games that focus on numeracy and money, let them help you find prices in the supermarket, and introduce pocket money so that they can put money lessons into practice. With older kids, talk to them about needs vs wants and encourage them to get a part time job.
What are the best resources for your kids to continuously improve financial literacy?
To help your child's financial education during Talk Money Week and beyond, we've pulled together a list of financial literacy resources for children. As well as a financial guide for every age group, you'll find helpful books, podcasts, apps and other fun ways of learning. You'll also find useful articles on the GoHenry blog.
How can GoHenry help
GoHenry's mission is to make every kid smart with money. The card and app are packed with great features that help kids safely and securely learn about money, from saving to smart spending. In-app Money Missions make learning about money fun and engaging with videos and quizzes covering everything from saving to budgeting. Parents can set flexible parental controls in the GoHenry app, and receive real-time spending alerts whenever their kids use their GoHenry kids’ prepaid debit card. You can also create savings goals and recurring pocket money payments.