Finance is a big part of an adult’s world but it’s not given the attention it deserves during childhood, says Eunice Sibiya, Head of Consumer Education at FNB.
Take extra care to not only teach but also to demonstrate good money habits to your children.
Eunice suggests three things to teach your child:
- Separate money from your emotions. As your child learns to detach emotions from money, they will make logical decisions about how to spend their money. ”Help your child understand why they need to purchase something, rather than doing so without thinking it through; it will go a long way to helping them in the future.”
- The value of money. Until your child earns their first salary, money is usually an abstract concept. “Discuss what they want to have, whether it’s clothing, a toy or even airtime,” says Sibiya. “Use that in relation to something you use as a family every day, such as milk or bread. If they want a R50 item, discuss how many loaves of bread that could be. You can even put something like their school fees in context by making them work out how many loaves of bread it would take to pay.”
- They are in control of their finances. You control money; your money does not control you. Eunice says children must learn that every financial decision, even seemingly small and insignificant, has an impact on your money.
“The control exerted over finances will determine if they have a solid savings plan or are swimming in debt," she adds.