Good money management skills are better learnt from a young age. Showing your kids simple things like – shopping around for the best price, saving pocket money for that game and budgeting, can lay a good foundation. It will also help you later in life because they won’t be on your payroll when they’re old enough to look after themselves.
It’s never too early to teach your kids about money. In fact, the earlier, the better. So, get your child a piggy bank. They can learn the worth of money and saving for small goals in their piggy bank before they even understand how to count it. When you go shopping with your child, allow your child to take some of the saved money. Don’t buy any treats but show them what they can buy with that saved money. By doing this, they’ll learn about the difference between the things they want and the things they need.
You should also consider saving as a family for something fun like a visit to the zoo or a holiday. This is a good opportunity for you to show your child good money management.
Pay pocket money for doing chores
When you give a small allowance, you’re teaching your child that money doesn’t magically spring from ATMs. It is earned. But remember not to pay for everything. Bringing you a glass of water doesn’t count as a chore. So, make it clear by setting tasks such as helping with the gardening, washing up, cleaning their rooms or taking out the trash. The easiest way to follow through is by drawing up a schedule and letting your kids tick off what they complete. You can them reward a small amount of R2 per day and nothing more.
Show your child how to budget
If you’re an impulse spender, you were probably never taught how to budget. You first have to teach your child how to deal with different sums of money. The best way to do this is by giving them a mixture of coins and notes in their pocket money. They then have to set aside a few coins or notes for saving.
Also, let your child help write your shopping bill. You can even show them how to read things like household bills. In addition to all this, give your child a fixed amount of money to spend on family holidays. They need to know how much they can spend daily to avoid running out of money.
Inspiring your kids to save
When your child wants a toy, game or attend a concert, help them think about ways they can earn money for their want. You can even offer to add to their want if they reach particular savings goal. If your child can do this, job well done!
When give your kid a solid financial foundation, the habits will stay with them for life.