How to teach children develop good money habits

In a recent newsletter competition, we had asked our members “What advice would you give to your younger self?” Our winner, Leah, said, “I would tell my younger self that although having fun is the best thing to do, while you are young and able. Rainy days will always happen when you’re least expecting. A few pounds a month adds up over the year. Don’t be afraid to say you can’t afford something! Be proud that you are saving for your future and not being frivolous for today.”

This has been quite valuable advice as it makes people aware that they need to save for a rainy day and be assertive if they can’t afford something.

By teaching children at a young age about good money habits, they will always be grateful that you taught them how to be responsible with money, a valuable life lesson.

Here are some ways that you can teach them how to develop good money habits:

Be a good role model by being responsible with your own finances

Children observe and emulate what the grown-ups around them are doing. Showing your children that you have set financial goals, created a budget, made a shopping list (and sticking to it) and finding ways to save money will have an automatic positive impact on how they perceive your attitude towards money.

Go back to basics with cash

Earning pocket money is still common where children get paid for completing chores or for rewarding good behaviour.

By showing your children the value of money, they will appreciate it and make them feel grown-up.

Also, take them shopping when you go so that they can see how a shopping list works and what the receipt looks like in the end. This will show them the importance of a shopping list and budgeting.

Open a Junior Savings Account

By getting them a Junior Savings Account, you can show them how their savings are growing. This would also be a good time to start talking to them about what they would like to do with their money in terms of future planning. This will instil a good saving habit that will stay with them into adulthood.

The concept of spend, save, give

If you are rewarding children with pocket money, show them the concept of spend, save and give.

How the concept works

Divide the money into three portions as follows:

  1. Spend – agree with your child as to how much they will spend on something of their choice.
  2. Save – the second portion is saved for a goal that your child trying to meet or for long-term saving which you may have put into the Junior Savings Account.
  3. Give – encourage them to use of their money to help others. For example, you can give some money towards a charity of your choice or through awareness days and events that they come across such as Red Nose Day. This is a good opportunity for you to talk to them about donations.

Controlling spending

Give your child the independence to make decisions as to how they will spend their money.

You can give older children pre-paid debit cards so pocket money can be paid straight from your bank account to theirs. You can control their spending limits and see how much they are spending and what they can buy.

While you do this, you can talk to them about setting a budget and make them aware of their spending/how much is left in the account. This will teach them how to be cautious when spending and track their spendings.

Staying safe

Teach them that they need to protect their personal information as much as spending and saving.

Ensure that their identities are protected online by keeping an eye on their social media accounts and making sure that they know the dangers of sharing any personal information on any digital communication channels.

Also, let them know about scams both offline and online. For example, that they shouldn’t share passwords or account details if somebody asks them.

 

Hertsavers referral schemes

As we rely on the support of the local community to strengthen the credit union, we are on the mission to grow our credit union. Therefore, we have the following referral schemes in place. The only criteria is that your referee needs to be working or living in Hertfordshire.

Child Benefit referral scheme:

Members that refer a new member to Hertsavers for a Child Benefit Loan can now claim a £50 referral bonus for themselves and the new member, who will also receive a £50 bonus. You can find out more here.

Workplace champions

If you already have a payroll savings scheme set up at your workplace, you can become a workplace champion. If your referee takes an introductory loan of up to £2000, which is payable over three years, the Champion and their referral will both receive an additional £100 to their account. Find out more.

Why should your referee join the Hertsavers Credit Union?

1. We are a not-for-profit so your money is safe.
2. We have low interest rates therefore when you borrow a loan, you are also saving money.
3. All savings up to £85,000 per member are guaranteed by the Financial Services Compensation Scheme.

Hertsavers Social Impact Report

We are currently conducting a survey across all our members to understand how joining our Credit Union has impacted their lives and the overall satisfaction of our members.

What is a Social Impact Report?

A social impact report is used as a communication tool to measure how we, as a credit union, is performing and use it to relate to the overall change brought about to people’s lives and the environment over the past two years.

How will be undertaking the research?

We will be conducting a members’ survey over the next couple of months to get our members’ feedback, thoughts and stories. This will be sent out to all members who have opted in to receiving information via email. If you would like to receive a copy of the members’ survey and you aren’t on our mailing list, please contact office@hertsavers.co.uk with the subject line ‘Members Survey’. All the participants who complete the survey will be entered into a prize draw* where two lucky winners will receive £50 into their Hertsavers Savings Account. *Terms and Conditions apply.

We will also be holding virtual face-to-face interviews with some of our members as well as our payroll partners. If you would like to get involved, please register your interest here. All the participants will receive £20 into their Hertsavers Savings Account. Terms and Conditions apply. Further details will be released closer to the time.

As a thank-you, all the participants of the survey will be the first to receive the Social Impact Report.

TERMS AND CONDITIONS FOR THE PRIZE DRAW

Please read the full terms and conditions below to enter the Hertsavers Credit Union Members Survey 2021 PrizeDraw.

Prize Draw Terms and Conditions

1. By entering the Prize Draw you are agreeing to these Prize Draw terms and conditions.
2. The Prize Draw is being run by Hertsavers Credit Union.

Eligibility to enter

3. The Prize Draw is open to Hertsavers Credit Union members only and entrants must be 18 years of age or older.
4. Employees and board members of Hertsavers Credit Union and its subsidiaries including Employees and board members of Credit Union Solutions (CUS), along with their families and members of their households, are not eligible to enter.
5. In entering the Prize Draw, you confirm that you are eligible to do so and eligible to claim any prize you may win.
6. A maximum of one entry per individual is permitted.
7. The Prize Draw is free to enter.

How to enter

8. Your name and contact details are required for us to notify the winners.
9. By entering the Prize Draw Hertsavers Credit Union cannot guarantee that your survey response will remain anonymous.
10. Prize Draw entries will be accepted up to Midday on 18 July 2021. Entries after that time and date will not be included in the draw.
11. To enter the Prize Draw simply complete and submit the Hertsavers Credit Union Members Survey 2021.
12. Hertsavers Credit Union will not accept responsibility if contact details provided are incomplete or inaccurate.
13. Hertsavers Credit Union holds the right to disqualify entries that demonstrate a lack of consideration to the main survey, including incomplete or incomprehensible answers.

The prize

14. The prize will be £50 in the member’s Hertsavers Savings Account.
15. Two winners will be drawn at random.
16. The prize is non-exchangeable, non-transferable and no cash alternatives will be offered.
17. Hertsavers Credit Union reserve the right to substitute prizes with another prize of equal or higher value if circumstances beyond our control make it necessary to do so.
18. The decision of Hertsavers Credit Union regarding any aspect of the Prize Draw is final and binding and no correspondence will be entered into about it.

Winner announcement

19. Winners will be notified after 15 September 2021 via the contact details (email or phone) provided in their Members Survey response.
20. Hertsavers Credit Union will attempt to contact the winners by email up to two times.
21. If either winner does not respond to the emails notifying them of their win within 14 days of the second email, they will lose their right to the prize, and Hertsavers Credit Union reserves the right to choose and notify a new winner drawn at random.

Receipt of the prize

22. Please allow 30 days for delivery of the prize into the Savings Account.

Data protection and publicity

23. You consent to any personal information you provide in entering the Prize Draw being used by Hertsavers Credit Union to administer the Prize Draw, and only for those purposes as defined within our privacy notice.
24. All entrants may apply for details of the winning participants by contacting us at office@hertsavers.co.uk.
25. The winners agree to release their first name to any other Prize Draw participants if requested via Hertsavers Credit Union.
26. An announcement of the winners’ first names will be made via Hertsavers Credit Union members eNewsletter.
27. All personal information shall be used in accordance with Hertsavers Credit Union’s Privacy Notice.

Limitation of Liability

28. Hertsavers Credit Union does not accept any liability for any damage, loss, injury or disappointment suffered by any entrants as a result of either participating in the Prize Draw or being selected for a prize.

General
29. Hertsavers Credit Union reserves the right to cancel the Prize Draw or amend these terms and conditions at any time, without prior notice.
30. The Prize Draw and these terms and conditions will be governed by English law and any disputes will be subject to the exclusive jurisdiction of the courts of England and Wales.

TERMS AND CONDITIONS FOR THE VIRTUAL FACE-TO-FACE INTERVIEWS

1. The interviews are being conducted by Hertsavers Credit Union for the social impact report.
2. The reward will be £20 into the member’s Hertsavers Savings Account.
3. To get the £20, the interviewee needs to be available and participate in the full interview.
4. Interviewee needs to be a current member of Hertsavers Credit Union.
5. The interviews will be conducted over Zoom, Google Meet or Teams and will be recorded for the purpose of the research only.
6. Your name and membership number is required so that we can add the token into your Hertsavers savings account.
7. The token is non-exchangeable, non-transferable and no cash alternatives will be offered.
8. Please allow 14 days for delivery of the token into the Savings Account.
9. Employees and board members of Hertsavers Credit Union and its subsidiaries including Employees and board members of Credit Union Solutions (CUS), along with their families and members of their households, are not eligible to be interviewed.
10. Hertsavers Credit Union reserves the right to substitute rewards with another reward of equal or higher value if circumstances beyond our control make it necessary to do so.
11. Hertsavers Credit Union reserves the right to cancel the interview session and rewards or amend these terms and conditions at any time, without prior notice.
12. These terms and conditions will be governed by English law and any disputes will be subject to the exclusive jurisdiction of the courts of England and Wales.
13. All personal information shall be used in accordance with Hertsavers Credit Union’s Privacy Notice.