Don’t leave explaining money to your children until they are all grown up
As parents, you want the very best for your children. Your wish for them is to be happy and healthy, not only while they are still under your wing, but as they grow older too. To ensure that our kids have the best future possible, we teach them the necessary life skills that will do just that – these skills are often focussed on careers, relationships and matters of the heart. But one important life skill that we shouldn’t neglect – but so often do – is the topic of finances. Helping your children become money-savvy adults will pave the way to a happy, healthy and successful life.
Begin with the basics
The earlier you can introduce your little ones to the concept of money, the better. Grab every opportunity you get to familiarise them with how finances work with both hands – and doing so in a fun and exciting way is a bonus. As soon as your kids are at an age where they grasp exactly what you’re telling them, explain the ins and outs of finances to them – tell them what money is, why we make use of it, and the fact that everything costs money. We’re often told that actions speak louder than words, and the same holds true for when it comes to teaching your kids about finances. So, if you want to take it a step further, take your kids along on shopping trips to the grocery store and show them that the different products costs different amounts of money. Make things fun by telling them the products that you need. Allow them to spot it in the store and let them look for the cost on the price tag. And at the end, show them the till slip, too.If your little one enjoys story time, why not incorporate some educational moments in there too? There are various kids’ books that are both educational and entertaining.
Money doesn’t grow on trees
Many of us grew up hearing this saying, especially at those moments when we nagged our parents for that toy or sweet at the store as a kid. Why not carry it over to your very own little ones? Make them aware from a young age that money is not unlimited, and that it can run dry if you splurge it on silly things. Teach them that money is earned and that it’s not something you get simply by existing – you have to work for your moolah.
Hey, big saver!
Tying in with the previous point, it is recommended that we teach our kids the value of saving money instead of just blindingly spending it all. Tell them about the importance of saving some money, be it for something they want or for a rainy day. Practise makes perfect, so help your little one prepare for life as a grown-up by helping them save money for something they really want. Give them a small ‘allowance’ – you could do this as a way to thank them for doing chores, or simply as pocket money. It’s a wonderful and practical way for them to learn about money management. A clever tip would be to use a clear jar or container to hold their savings. This way, they can see their money grow for that toy or treat they want to purchase.
Smart spending
Teaching your kids about saving money is a useful tool to help them realise that impulse buys are not something to aim for. Talk to them about what impulse buys are and how it can affect their finances. A great way to make it even more clear is to take real-life examples. The next time they want that expensive toy or trendy shoes, explain the cost of these items to them and let them know that it doesn’t fall within your budget. Another topic worth discussing with your children is knowing that ‘need’ outweighs ‘want’. When it comes to spending money, it is very important to prioritise when spending; it’s best to instil this concept at a young age already. Raising money-smart children doesn’t have to be a hard task. Open their eyes to becoming independent adults who know how to be money savvy. But don’t forget that children are master copycats – ensure that you set a good example with your spending habits, and try to stick to these tips yourself.
Words by Bianca Muller
Photography: Pexels
