From Piggy Bank to First Savings Account - Teaching Kids the Value of Money

We ask whether your children are right on the money when it comes to saving.

As we tighten our belts to beat the credit crunch, what better time to teach our little ones how to be top of the class when it comes to the value of money?

From September 2009, school children from primary age upwards will learn about managing their pennies as part of the compulsory Personal Social and Health Education (PSHE) curriculum.

With consumer debt at record levels, it's a step in the right direction towards a creating a generation of cautious savers rather than extravagant splurgers!

Harry Potter for Pennywise Youngsters

Christine Thompson-Wells, a teacher and money psychologist, is the author of a new book helping parents do just that. 'Will Jones' Space Adventures and the Money Formula' tells the intergalactic story of the Grigans and the Spectrons, whose leaders avoid a war over resources by learning to work together.

"The book was written to help children understand the concept of money and how money works in their life," says Christine.

The book is aimed at six to nine year olds while seven more books will cater for other age groups.

"Obviously, one of the major things children need to understand about money is its value," explains Christine. "If we want to start teaching the value of money, we need to start now, otherwise some children aren't going to have the ability to cope."

To ensure this, Christine recommends youngsters learn how to work a money system. "Most adults get into trouble financially because they haven't got a system and they haven't been taught how to use one. If a child learns value for money they will always respect it, and the parent is the child's primary teacher."

In the book, money is broken down into spends - 70% is set aside for living costs, 10% is donated to a children's home, 10% is savings and 10% for developing something for the future.