We all want to raise financially savvy kids that will become successful adults in life. But how and where do you start? Here are a few tips and tricks.
Tips to raise financially savvy kids
Show them how the money goes in
If all your kids see is you withdrawing money from the ATM, they’ll assume that machines hand out money. You also need to show them how you deposit funds, or in our modern world, transfer funds online to a savings account.
Help them set goals and save
Label a jar with a set amount of money that your kids can use for something special. Start small with R50 that’ll help them buy a small treat. Help them save and collect R50 worth of change and then count it out before buying the treat. Once at the store, have your child pay for their own item with the money they saved up.
Teach them the difference between wants and needs
You need shoes, but you want the latest fashion brand. You need food, but you want to have pizza. Apply this rule to all the things you buy and to any of your kid’s requests for random “stuff.”
Make choices, not sacrifices
Don’t just say “We can’t afford that” or “It’s too expensive.” Instead, substitute those sayings with comments that express intentional choices. For example: “I want to stay home so we can save and go on a family holiday at the end of the year.” This will help eliminate that feeling that “No” means sacrifice, scarcity, or embarrassment. Your kids need to learn that life is all about making the right choices at the right time.
Show them how you save
Along with your kid’s savings jar, you should have one for the family too. This is where you’ll save as much as possible for special family occasions and events, like that end-of-year vacation we just mentioned. You can also have a jar where you save for charity funds. This is a nice way of showing your kids that it’s important to give back when and wherever possible.