Leave a legacy of good money management
Good money management is a wonderful example of a tradition you can create in your family. Parents often budget and do their financial planning behind the scenes. #FocusOnMoney
Children take it for granted that mom and dad know how to work with money, because they seem to have everything covered each month.
“Obviously, parents want their children to have bright futures and be able to provide for their own families. This is why teaching children good money habits from an early age is so important.
With the right guidance and tools, they can steer their own path to financial freedom. It is a priceless gift to give your children,” said Lindiwe Miyambu, African Bank’s group executive for human capital.
Ways to start age-appropriate money lessons:
• Age 3 to 10: Use a see-through piggy bank so the kids can see their saved money growing. If your child wants to buy something, tell them to take money from their piggy bank and let them physically hand it over to the cashier. Remember, it is never too early to open a savings account for your child.
• Age 11 to 16: Don’t just dish out pocket money; encourage your children to rather see this as “commission” for tasks done. Even if they have money to splurge, help your children avoid impulse buys.
• Age 17 to 20: At this age, children may have started a job and are now thinking about buying a car or moving out of the house. This is a good age to also think about investing money in accounts like a money market or fixed deposit account, to plan for the future.
