Raising money savvy-children

For most parents, saying no to their children’s requests is a daily dilemma. How is it possible to say no to that request for the extra toy, trip to the adventure park or children’s wear, yet you can afford it? Moreover, some of the parents who were deprived during their childhood are under pressure to pamper their children.

Essentially, there is no harm in providing the best for your child. In fact, some parents’ goal is to be able to provide for their families without any hardship.

However, in some cases, efforts to provide for the children or even compensate for your absence through outlandish gifts has resulted in nurturing an entitled lot. We have been in situations where working class adults cannot manage their income well and still have to rely on ‘mummy and daddy banks’ to bail them out and make ends meet.

To minimise this scenario, be more deliberate in how we engage our children about money so that we have reasonable expectations about having money-savvy adults in the future, who will not come back to us for bailouts.

It is important to remember that most children learn from observation. If you want to raise children who are money smart, you need to check your attitude and behaviour around money in your household.

For example, are you always in a foul mood when holding discussions about money, especially when you have been presented shopping lists? Or are you a lavish spender whose impulse shopping has crowded the household with clutter? You will not be able to teach your child about delayed gratification when all they see are endless shopping trips.

Once you have reviewed your attitude and habits and whether they are in tandem with what you are preaching to your children, you can begin the process of instilling in them the different values that lead to financial security. The money lessons should be age appropriate and should depend on your judgment call.

Avoid overloading your children with money information and always be on the lookout for learning opportunities to reinforce the message. For example, when handling the value of savings, always ensure that you purchase piggy banks for your children. Teach them the importance of the habit of delayed gratification and how it can be achieved through putting away some money periodically.

One such example is their desire for the latest toys or suggestions regarding plans for Christmas later this year. Help them to understand that money available is taking care of priorities and that their desires can be met at a future date after saving for the same.

Spending wisely is another lesson that can be imparted to the children because most household expenses are recurrent. Explain to them the importance of planning and writing down wish lists for things that one intends to spend on. Allow them to accompany you during trips to the supermarket or market, where price comparisons for different items should be made.

In the market, teach them the art of bargaining for a good deal. In addition, if they are older, they should participate in meal planning for the week and the related shopping needed to make it happen. This will eventually save you from tantrums in the supermarket that usually occur when parents decline to purchase what children pick from the shelf.

VALUING MONEY

Another important value to instill in our children is the reward for hard work. The children should appreciate that the money you make is due to the hard work. Introduce them to your workplace or business so that they get a firsthand experience of what you do.

Explain to them that the money earned is what is used to pay bills, such as school fees and utilities. Teach them that money should be kept in a safe place, which is a bank, and this can be illustrated by a visit to witness customers transacting.

Let them anticipate the day their money saved in a piggy bank will be transferred to an account. Once they are age-appropriate, you can later talk about the different payment systems available, including mobile money.

All things considered, teaching your children about money management eventually pays off when they become adults because they learn to value it. Shaping their knowledge, attitude and skills about personal finances from a tender age will result in money-savvy adults.