Expert advice on teaching children the value of money

POLOKWANE – The age-old adage “money can’t buy happiness” may be true, but learning about healthy finances from a young age can certainly contribute to a more stable and secure future.

Polokwane Review spoke to Thys de Beer and Matsobane Tleane from T Crescent to gain insight into teaching children the importance of managing money.

De Beer emphasized that adults set the example for their children when it comes to saving and financial planning. “According to statistics, only 7% of South Africans can retire comfortably, while 36% do not have a retirement fund,” he noted.

Tleane added that budgeting is a crucial aspect of saving money. “To save, you need to budget for it. You need a plan on how to spend your money within limits.”

Many parents tend to indulge their children’s every desire, but Tleane advises against this approach. Instead, he recommends giving children a set amount of pocket money and allowing them to make their own purchasing decisions. This helps children learn the value of money and the importance of saving for more expensive items.

When teaching children about money, it’s essential to consider their age and tailor your approach accordingly. “If children see how much adults have to spend, they might become afraid to ask for anything,” Tleane cautioned.

De Beer suggested sitting down with your child to teach them how to budget. “Focus on basic expenses like friends’ parties and outings. Help them set up a simple budget, and they’ll soon understand how to spend within limits.”

Ultimately, teaching children about money management is an ongoing process that requires patience, consistency, and positive reinforcement. By starting early and leading by example, parents can help their children develop healthy financial habits that will benefit them throughout their lives.