I was reading some interesting research by Halifax and it showed children have very unrealistic ideas when it comes to salary expectations. How money wise are your children?
I asked my youngest what the Prime Minister arned and he said 5 million pounds and thought Doctors earned £900,000. In reality the Prime Minister earns £150,000 and a junior Doctor starts on £27,000. I do worry my boys will be severely disappointed when they realise salaries are not as generous as they think!
At least both my boys seemed to have a pretty accurate idea about the cost of everyday life. Only being slightly over in that respect. My eldest has started going to the shops with his friends so has become more aware of the costs of products. So he is becoming more money wise.
My eldest said he would like to earn £17 million a year. But thinks he is most likely to earn £100,000. Even that seems a nice tidy sum to me, given that the current average salary is apparently £30,000.
My youngest wanted to earn a more moderate £500,000 a year. I always remember my brother saying he would be a millionaire when he was younger, we are still waiting. I do like children’s optimism though. Who knows by aiming high some children will actually achieve that.
How can you help your child be money wise?
Halifax wanted to share these tips.
Encourage children to save from a young age with a piggy bank. This will help them see their money growing as they add more and more conis. Make saving as fun as possible.
Give them pocket money. This will help them to manage their own income, until they get their first job.
Open a savings account. Halifax kids monthly saver has a generous 4.5% interest rate (terms and conditions apply).
Talk to your children about bills. Show them the bills you receive so the can begin to understand how much things cost.
Get them involved in managing the family finances when your out shopping.