Golden Nuggets of Financial Advice for my Children

Last Updated on 29 December 2022 by Colette

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Our ideas and attitudes towards money begin to develop at a very early age, far before we even really have any money to speak of!

As a child I know I had a Post Office account which I would sometimes put birthday money into or my Grandparents, who were keen savers, would buy us Premium Bonds.  As I got older my Dad started to pay my pocket money by monthly standing order into my current account – mainly because it ensured he wouldn’t forget but also because it taught me a bit about budgeting, about making my money last the whole month (an important lesson to learn and one I still struggle with at 35!)

(Thanks to “what the Redhead said” for the photo!)

TSB have asked me to think about golden nuggets of financial advice which my parents gave to me and also financial advice I’d like to give to my own children when they’re old enough to have their own current accounts so here goes:

1. You can only spend it once
Even as I write that I can hear my Mum saying it to me!  I think its most likely something my Grandad would have said to her.  It’s true though – you can only spend it once.  As a teen I was never allowed to borrow money – there were no subs on pocket money, ever.  I know we all live in a society where we want it now, we buy things on credit to satisfy our impatience but then we have to pay it back, which of course leaves us short later on.  I learnt this the hard way, as did Dave.  Easy access to credit in your early twenties might be fun at the time but I can promise you it’s definitely not fun when you’re still paying for it in your thirties.

2. You get what you pay for (also known as “buy cheap, buy twice”)
This is top of the “Things my Mum says all the time” list . . . we all love a bargain but I must admit I’d rather pay for quality.  Of course there are times when you do pay for the brand name but mostly I think it’s better to invest in your purchases – buy shoes which will last not wear out within months, clothes which will wash and wear well not cheap, ill fitting ‘bargains’.  Dave often complains about my expensive tastes . . . I blame my parents!

3. Keep a track of it
I remember back in the days of cheques (how alien does that seem now, paying for something by cheque!?) Mum used to religiously write on all her cheque stubs, what she’d used them for and to keep a track of her balance – I seem to remember my Dad wasn’t quite so fastidious about that.  Anyway keeping a track of your spending is really important – I’m terrible at forgetting about bits and bobs that I’ve spent and suddenly realising that my balance is considerably less than I thought it was.  Perhaps I need to start a bit of an old school spending diary.

4. Budget, budget budget

In my teens I used to write a list of things that I was going to do or buy that month and how much they would cost so I could plan what I would spend my money on or what would have to wait.  You’d think that after setting off on such a strong foot I’d have carried on developing my budgeting skills into my twenties.  Hmmm.  Not so.  Now in our mid 30s Dave and I budget extremely carefully – because we have no choice.  There is no stretch in our monthly budget so if it’s not written down it doesn’t happen (even if it is written down it still doesn’t always happen!)  I look forward to a time when our budget isn’t quite so strict, but it’s something we will always need to do!  A list of your ins and outs for the month helps you to keep control of things, to make sure stuff gets paid on time and to figure out if that gorgeous pair of shoes really is within your reach or if you’d better leave them on the shelf for now!

5. Save 
This is something which really bothers me – Dave and I have no savings and our children have next to no savings either.  My Grandparents would be horrified I’m sure.  Within the next few years, when the financial pressure on our household should ease, saving for all of us will be important.  At the moment we are teaching Ben and Chloe to save ready for their summer holiday in France.  Ben often points out things in the shops which he likes and I remind him that he can’t have it as he’s saving his money for his holidays.  I had to laugh when he told his teacher a couple of weeks ago that he wouldn’t be able to go on the school trip as we had no money because Mummy and Daddy were saving all our money for France!  I think the message is hitting home!

What golden nuggets of financial advice will you share with your own children?