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It’s scary to think of our kids negotiating the UK’s property market – not least because many of us don’t want to think about them maturing into adults quite yet!
We also don’t want to impose upon them the perceived stresses and complications that many connect with the buying and selling of homes. After all, most of us want to preserve their innocence and comfort for as long as we can.
However, it’s likely that children and young people will benefit considerably from learning about the housing market. In this article, the specialists at Property Solvers – experts in selling homes fast – will explain why we should be teaching our kids about property.
- It will impact their future
Due to the inflated prices that one often sees in property, along with the relatively low average wage, more and more young people are convinced that they will never own a home.
While the debate over the pros and cons of “generation rent” is a separate matter, we don’t want our young people to feel as though the decision to make an investment of this kind has been taken out of their hands completely.
It’s important that children are able to understand the basic facts related to property and can therefore follow the processes involved in an educated manner.
2. It will help them to understand finance and law in a practical sense
Understanding the property market will help to reveal the power of savings. A young person may begin to feel more positive about their future as a homeowner once they discover that they will only require a mortgage deposit to begin their journey – not the full asking price.
It’s also good for children to understand money management in general. Whether they will own or lease a property in the future, they’ll need to understand budgeting. It will offer adults peace of mind knowing that their child will be prepared for monthly property payments.
The legal aspects of homeownership, including taxes and insurance, should also be taught to children. Knowing that one does not simply “own” a home but is also “responsible” for it in a legal sense will improve their general understanding of the law and its purposes.
3. It will improve their appreciation of value
The wider world of large purchases, including the acquisition of property, is often a mystery to younger people. In some cases, a child won’t have even the most basic idea of how much a house costs, as it’s not something that currently affects their life.
However, by developing an understanding of the price of a typical property in a certain neighbourhood, a young person may gain a stronger grasp on the way the financial world works.
It’s particularly important for youngsters to understand the concept of a mortgage as not just something you “pay off” monthly, but also as something you are “investing in” as part of a significant financial asset that can be transferred in the future.
4. It will show them the connections between finance, society and politics
As a result of the current approach to education, children are often taught in a relatively compartmentalized manner. The separation of school subjects can lead to a disjointed way of thinking when it comes to the wider world.
Teaching children about property can help them to understand the connections between certain fields. For example, young people should learn how the political climate of a country can have a direct impact on its economy and may affect its property market considerably.
This sort of teaching crosses the boundaries of numerous subjects and helps to “tie them together” in a student’s mind.
5. It will give them a head start
Once a child understands a little more about the property market, they will have the option to begin saving!
Many parents help their kids to open their first savings account fairly early in life. Making the possible options clear can be very helpful in teaching a young person the importance of saving in this way.
It’s good to first determine what they would most like to save for: education, perhaps, or maybe their first car or house.
Once they have determined their priorities, a child should be made aware of how much they’ll need to put aside for that particular purpose and how long it will take them to build suitable funds. This will enable them to keep track of their finances much more easily.
Educating a child about investment by way of their own savings account will also open up the options available to them later in life. It means they may become financially independent sooner, and will not only have funds at their disposal, but will understand how to use them.
Children should be taught about the property market in order to help grow their confidence and understanding of the wider world. This approach will set them up for both financial success and a sense of achievement.