Little-known ways to raise money-savvy kids
13 Sep 2018 CURRENT AFFAIRS
By Zuko Komisa
Raising money-savvy kids
We’ve all heard success stories where the victors speak about the enormous influence their parents had on their lives, how the lessons they learned early in life helped propel them to success.
When it comes to raising money-savvy kids, you need to start by acknowledging the biggest parenting lesson: Kids do what you do, not what you say they should do. Leading by example, the following lessons will assist your child to go on the right path to financial literacy from an early age. Let’s start:
Expose them to the family’s finances
This is the most important lesson you can teach your child. You will commonly find people say “I don’t know how my parents managed to raise me with the little they had”. Imagine if you knew where every cent went, how it was spent and were part of the money conversations as a child?
Take them to the bank with you, show them bank statements, get them to make a suggestion on how to stretch the rands you are making. In a nutshell, give your children sufficient exposure to how money is made and spent properly.
Start the conversation early
The biggest problem with many families is them making the topic of money taboo, which leads to the habits children have later in life. The conversation of money should be had at a very early stage of a child’s life. Children need to be taught that money is merely a tool, not to be feared, but to be understood and used well.
Force them to read money literature early
One of the quickest ways to get them to be excited about this topic is to encourage them to start reading about it early. There are tonnes of bookstore filled with money literacy books.
A typical example of a book every child should read is Robert Kiyosaki’s book “Rich Dad Poor Dad”, there is a teen version that they will absolutely enjoy.
Acknowledge the gift of time
The perception in today is time is money, which has lead to a parent buying children expensive gifts because they didn’t spend enough time with them. The reality is, time is the most important commodity we all have.
You cannot replace it, borrow it or exchange it. Once it is gone, it’s gone. So spend as much time as possible with your children.
Also important to note:
- Protect your kids from the world of marketing, make them understand the objectives of brands is to get them to spend money.
- Make your lessons practical. When you are with them, use cash and coins to show them the value of a transaction and money.
- Encourage them to be different and smart. Instead of falling for the everyone is doing it
- Get them to pay your bills for you, the rent, car payments, fines as soon as possible.
- Show your kids the value of assets, and teach them to take good care of them.
Raising money-savvy children will help them in later in life, it will rewire their brains to operate in a different wavelength, they will thank you one day when are finally able to look after themselves.