Teaching your kids to manage money
The media shapes children's minds and may give them a misguided view of how money is ‘easily’ earned and how it should be used. It's up to the parents to teach their kids how money is really earned and how to spend it wisely.
In the digital age, parents cannot afford to neglect the crucial responsibility of teaching their kids about money management.
Ester Ochse, FNB Wealth and Investments Product Specialist, said whether it’s a billboard on the way to school, lifestyle images in a magazine or social media images of their favourite celebrity – children can access information which may give them a misguided view of how money is ‘easily’ earned and how it should be used.
“Once a child has pre-conceived ideas of how money management supposedly works, it may be difficult for parents to entrench their preferred principles. Hence, it’s important to start the money conversation very early in a child’s life,” Ester said.
There are practical ways to help your children get to grips with managing money:
• Household budget – whether it’s weekly or monthly, all families that earn income must ensure that every rand is dedicated accordingly. Get your children involved in this process.
• Chores – start introducing educational exercises and tasks around the house to help your kids appreciate that ‘money doesn’t grow on trees.’
• Family vacations – not every family has the resources to go on vacation now and then, but where possible, parents can task their kids with managing holiday savings, especially if it’s a destination that kids are looking forward to visiting.
“Teaching kids about managing money needs to be a practical exercise instead of a conversation once in a while. This way, the awareness becomes a part of the child’s life and they start adopting the same principles in other areas of their lives,” Ester concluded.
Source: FNB Corporate Communications
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