Nowadays, it’s crucial for parents to equip their children with a strong financial footing. Unsure where to begin? Here are some tips and engaging ideas to help you kickstart this conversation with your children.
1. Encourage saving from an early age.
Promote this important financial habit by rewarding them for saving for example match every N$100 they put away with something extra, to make saving attractive while teaching them the value of money and patience.
2. Share stories of successful family members
Share successful family financial stories to teach them about smart money management. Identify a family member who made wise financial decisions early on, and share their story.
3. Help them track small expenses.
Help your child keep track of small costs, like buying a cool drink daily, to plug any future financial leaks they may develop. A great idea is to pack juice or water in their school bags to replace the cool drink and save that money for something they really need or want.
4. Openly discuss debt.
Discussing debt is another crucial aspect of financial education. To make it more relatable, use board games like Monopoly to illustrate the consequences of borrowing.
5. Take a hybrid approach to money.
Complement digital tools with tangible systems – e.g. the ‘envelope method’, allocating cash to envelopes for different purposes. This will help children grasp the concept of budgeting and the value of hard cash.
6. Lead by example
Acknowledge what you don’t know and get the help you need to instil money management fundamentals in your kids, especially if you didn’t receive adequate financial education when you were growing up.
7. Let your kids Live with Confidence
You don’t have to explain everything about your finances but do involve them in some important aspects – e.g. explain why you can’t go away for a specific occasion and also organise a family break the very next weekend.
*Wendy Naruses is Marketing and Communications Manager: Distribution at Sanlam
