What kind of relationship does your child have with money? Do they always spend their birthday money? Do they love heading to the shop to spend money on sweets? Do they know where money comes from?

This is something we feel really passionate about and we’ve always told our children they can save half and spend half of their pocket money. They earn this through doing everyday tasks throughout the week. Often they choose to save up for something bigger or more important to them. Or they keep it just because they like to to know it’s there in their money box. It’s taken a while to get to this stage. Children are generally all about instant gratification so it’s definitely a skill to cultivate.

What springs to mind when you think of money? Do you put your head in the sand or be proactive and find out more? It’s not as scary as you think. ISAs, savings, pensions – check out this site for more information on personal pensions – house deposits, credit cards, and of course, bills. They can be very straightforward. The more you know the better equipped you are to convey the most important aspect of money into your child’s education. How else are they going to make informed choices when they get older?

The idea of teaching your kids about money is daunting, to say the least, however, I've gathered some simple ways you can introduce the importance of saving and the value of money into your child's everyday life. Read on to find out more.

Always set a good example

We all know that kids pick up everything from their parents. From eating habits to swearing! Another habit your little ones can pick up is your approach to spending. If you're happy to use your card frivolously, never say "no" and very rarely check the price of things before you head to the till then your child will think that this is the norm. Instead, try to show your child how you budget for your shop, check the prices of items, if your child asks for sweets or treats every time they go out, say "no" from time to time and mention how you have to be careful with your money.

Be wary of pocket money

The argument of whether or not kids should have pocket money is well documented. However, a better approach is commissions rather than pocket money. Giving your child money for completed tasks and chores is much better than giving them money just because they exist. It teaches them that you only get money for completing hard work!

Warn them about credit cards and payday loans

Of course, if your child is a teen and a little older, it makes sense to make them aware of financial issues such as credit card borrowing and payday loans. That way it’ll stop them falling into a financial black hole before they’ve even become financially independent. As soon as they hit 18 they’ll be bombarded with credit card deals and loans – give them the tools and knowledge they need to make better financial decisions.

Don’t argue

Associating money with negativity doesn’t give the right impression. Therefore if money causes friction in your household, avoid arguing about it in front of your kids. Try to keep money and the idea of saving as a positive thing.

Disclosure: This is a collaborative post.