Gogo knows best: Advice on teaching kids about money

Financial advice parents can teach their young ones from South Africa’s favourite gran.
Financial advice parents can teach their young ones from South Africa’s favourite gran.

Grandmothers have a lot to say about what we do, who we date, what we wear, and the truth is that if we keep our eyes and ears open, we can learn a lot from their, sometimes (okay, often) unsolicited advice. 

There are many things that we can collectively recall our grandmothers telling us: “use salt to remove stains”, “never go to bed angry” or “always wear clean underwear in case you’re in a car crash”, they are after all from a time when women reared the children and men made the money.

So even though they have a lot to say, it’s seldom that we get money advice from gogo.  

That’s why we’ve enlisted the advice of South Africa’s favourite gran, uGogoOfficial.

A mother of three and grandmother of ten, she’s been around long enough to know that nothing is mahala, and she comes equipped with more than just stain removal and relationship advice. 

Also see: Helping children make sense of the Rands and cents 

So here are @uGogoOfficial’s top four tips for parents on how to teach your kids about money: 

Teach your kids the value of money

Take them along on a trip to the bank or to the ATM – these are good opportunities to speak to them about money and it’s a great way of getting them excited about their own savings.

Teaching children the value of money also helps them to understand that although financial security is important, money certainly doesn’t bring you happiness.

Use  pocket money to teach your kids how to manage their money

From a young age, teach your kids how to manage their pocket money. 

This can start with collecting coins and then eventually turn into their own real savings bank account. 

An important part of teaching them how to manage their money is setting rules around spending and saving. Budgeting can feel like a chore for children so encourage them to take pride in their savings and make it fun. 

Teach them to associate money with work

They need to understand that money is earned, and that mom and dad’s money is not their money. 

Agree on household responsibilities that they can take on in exchange for pocket money. 

The sooner they understand that nothing is for mahala, the better. This is something that they will carry into their adult life. 

Incentivise them for saving

A good way to do this is to set a savings goal together and when they reach their savings target, take them shopping and allow them to spoil themselves.

This is great way to teach them balance in life. It shows them that if they work hard for their money and if they are smart with their money, then they will also be able to enjoy their money. 

To find out more, follow @uGogoOfficial on Twitter.

Compiled for Parent24 by Lesley-Anne Johannes. 

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