Some £400,000 has been awarded to the three year joint funded project – Talk, Learn, Do: Parents, Kids and Money – which will start at the beginning of September.
The pilot scheme aims to motivate parents and equip them with the confidence and ability to develop the next generation of money savvy adults.
Parents will be encouraged to help their children develop skills such as self-control, perseverance, sensible attitudes to money and setting financial goals. The pilot will be implemented via nearly half of all local authorities in Wales and will reach as many as 1,000 parents and 1,600 children aged three to 11.
Money management is less visible to children than ever before, yet the opportunities to spend have increased exponentially. This lack of visibility is a problem and MAS research shows that parents teach financial capability as and when the opportunity presents itself in a reactive rather than planned way.
The shift away from cash to card and online spending has meant the events which trigger money conversation have rapidly reduced.
Money Advice Service research also highlighted that 91% of 15-17 year olds say that their parents give the best money advice suggesting that teaching parents the skills they need is the best route to educating their children about the benefits of budgeting, saving and the dangers of debt.
Today’s announcement is the latest project by the Money Advice Service aiming to improve the financial capability of the UK. The organisation is now focusing on co-ordinating with organisations across the UK to help deliver these improvements whilst evaluating interventions to identify what really works to improve financial behaviours.
Caroline Rookes, Money Advice Service chief executive, said: “This project is a collaborative effort and together with the Big Lottery Fund, Welsh government and our partners, we want to empower children across Wales to make the most of their money both now and in later life.
“Our recent research has highlighted that parents have the biggest impact on their children’s financial behaviours and with this in mind, there is no one better placed to arm children with the skills and knowledge they need to make good financial decisions and reach their financial aspirations.
“This project is the next step in a new way of doing things for the Money Advice Service, collaborating with organisations to deliver projects which can really make a difference to people’s lives. We look forward to working closely with our partners and initiatives across Wales to make this project a success.”
Big Lottery Fund Wales director John Rose said: “The Money Advice Service has created a great pilot scheme and I look forward to seeing it in action. Partnering with local initiatives will mean they can offer a meaningful project that will make a difference to people’s lives. Instilling a sense of financial responsibility from a young age can really help children achieve their goals in later life.”
Minister for communities and tackling poverty Lesley Griffiths said: “It is important for children to develop sound money management skills, which will stand them in good stead for the rest of their lives.
“This is why I am pleased the Money Advice Service will be working in partnership with Welsh government initiatives, such as Families First, Flying Start and Communities First, on this pilot programme.”
