Make your kids money savvy

Q My elder child has just asked me for a very expensive pair of trainers. I'm a little short of cash myself this month but I don't like to disappoint him. What can I do?

A Don't overprotect your children from the financial realities. There's no reason why we should pretend to be a bottomless money pit so if you don't have the money, let them know. Being children, they will probably suspect you of arbitrary mean spiritedness, but they will also begin to get an appreciation of how much different things cost, and that buying one item means denying another.

Q Yes, but what about the trainers?

A Encourage them to save up for the more expensive items that they've set their hearts on. This will accustom them to the idea of delayed gratification and of only buying something when they can afford it.

Did you know?

Apparently three-quarters of parents admit to extending their children's credit from time to time. We further compound the financial corrupting of our flesh and blood if we tell them they can keep the money 'but don't tell your father/mother'.

According to a recent survey, one in ten parents admits to having committed this particular offence at least once, fatally undermining any attempt by the other parent to teach responsible financial behaviour.