Why you need to teach your kids that cash is king

Children learn about money from their parents and don't think they aren't watching you - they are.

This is according to Fin24 debt expert Moeshfieka Botha, who shared a few tips with parents on how to go about teaching children about money.

"Do not be reluctant to discuss financial issues with children."

Botha noted that they don't need to know how much you earn, but they should know what the electricity and food bills are for the month.

"They should know that your money is not just there for cellphones, clothes and luxuries."

She added that it is never too early for children to learn about money.

"Money is a tool, if they can use a cellphone to interact, they can use money to transact."

Teach kids that cash is king, she urged.

Parents should explain to their children from an early age that it is better to save for something and buy it cash, where possible, than get into debt.

"Teach them about interest and how it accumulates and adds to debt."

Children are clever and learn from what they see.

Botha advised parents to take their children along and let them learn how transactions are made, and how goods are paid for with a debit or credit card.

"Until our primary and secondary school education includes comprehensive financial literacy, the onus is on parents to empower and educate our children about money."

Watch the full video

- Fin24

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