Children 'should be encouraged' to understand money matters

Parents are being encouraged to highlight the importance of good money management to their children this festive season.

Ann Robinson, the director of consumer policy at the switching website uSwitch.com, believes that youngsters may be able to learn from the financial effects that the economic downturn has had.

She commented: "It's so important that children understand the concept of cutting back too - explaining what a tighter family budget can mean and getting children involved is a vital part of their development."

Ms Robinson also suggested that youngsters may be able to learn about future budgeting, and avoid things like credit card debt, if their parents are honest with them about why Christmas spending may be reduced in 2009.

Last month, uSwitch.com additionally highlighted figures showing that a number of people who are learning to drive may be opting to save cash by gaining tuition from amateur teachers.

Written by Gemma Walker.