Teach your children from young age to be money savvy

2015-06-24 06:00

THE most important principle in teaching your children to be money savvy, is to educate yourself. You as the parent need to know how to budget, cut expenses and reduce debt.

This according to Wikus Olivier, debt management expert at DebtSafe.

“Children also want to see how something works; therefore you have to show them how to set up a budget and let them allocate their pocket money. Give them control of their spending money, because that will teach them to take responsibility.”

His tips on how to teach your child to be money savvy include:

. Pre-School - Give them a set amount of pocket money with which they can buy treats.

. Teach them to save – make a piggy bank or moneybox where they can put money away for the toys they have their eyes on.

. Primary School - Introduce more items they need to budget for to teach them to think ahead, e.g. birthday presents for friends, toys or movies during the budget month.

. Let your child borrow money from you. They have to pay you back with interest so that they become debt smart on money owed.

. Help them set up a neighbourhood car wash, or a nail bar for the moms’ nails in the street to earn their own income.

. High School - Have them open an investment account at a bank which they contribute to monthly from their pocket money. They can use this to put a down payment on a car when they turn 18.

. Add in more items to budget for such as cell phone and data bundle costs.

. University – Let them take responsibility of budgeting and paying their way. Help them formulate a budget for university fees, books, rent and anything else they need to pay for. Give them the budgeted amount and check in with them on how they are finding the challenge. Give yourself access to all the account statements so that you can counsel them about their spending


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