Growing up my financial habits were not the best…and it affected me well into adulthood. I wasn’t the best saver, investor or budget maker. As I make amends I’m also trying to teach my children to be sensible about their finances. Here are a few things I and some of my friends are doing and I think they will help your children as well.
𝗘𝗱𝘂𝗰𝗮𝘁𝗲 𝘁𝗵𝗲𝗺: let them know that diligent work earns money. Like we often say “Money doesn’t grow on trees.
𝗘𝗻𝗰𝗼𝘂𝗿𝗮𝗴𝗲 𝘁𝗵𝗲𝗶𝗿 𝗲𝗻𝘁𝗿𝗲𝗽𝗿𝗲𝗻𝗲𝘂𝗿𝗶𝗮𝗹 𝘀𝗽𝗶𝗿𝗶𝘁: Discuss business ideas and encourage them to make money.
𝗛𝗮𝘃𝗲 𝗮 𝘀𝗽𝗲𝗰𝗶𝗮𝗹 𝗰𝗮𝘁𝗲𝗴𝗼𝗿𝘆 𝗼𝗳 ‘𝗽𝗮𝗶𝗱 𝗰𝗵𝗼𝗿𝗲𝘀’ : Now generally I don’t think its a good idea to pay your children to do chores as they should contribute their own quota to the household. However, you may decide to assign chores for which they can earn extra cash or a non monetary reward. Work more…earn more.
𝗚𝗶𝘃𝗲 𝘁𝗵𝗲𝗺 𝗮𝗻 𝗮𝗹𝗹𝗼𝘄𝗮𝗻𝗰𝗲: Many times we don’t give our children an allowance till they go off to Uni. From my experience it’s a bad idea. Giving them an allowance early will teach them about money management and prioritizing their expenses.
𝗧𝗲𝗮𝗰𝗵 𝘁𝗵𝗲𝗺 𝗱𝗲𝗹𝗮𝘆𝗲𝗱 𝗴𝗿𝗮𝘁𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻: Many times we want to give them what they want NOW! When appropriate teaching them to wait can give the purchase more significance. This is a very useful skill that reduces impulse buying.
𝗧𝗲𝗮𝗰𝗵 𝘁𝗵𝗲𝗺 𝘁𝗼 𝗯𝘂𝗱𝗴𝗲𝘁 𝗮𝗻𝗱 𝘀𝗽𝗲𝗻𝗱 𝘄𝗶𝘀𝗲𝗹𝘆: Every Naira, Dollar or Pound they have more be assigned. A portion should be assigned for saving , another portion for wants and another for needs. They should also know the difference between wants and needs.
𝗧𝗲𝗮𝗰𝗵 𝘁𝗵𝗲𝗺 𝗽𝗿𝗶𝗰𝗲 𝗰𝗼𝗺𝗽𝗮𝗿𝗶𝘀𝗼𝗻: When you go shopping let them understand why a particular brand is better value or why you prefer the more expensive or cheaper item.
𝗧𝗲𝗮𝗰𝗵 𝘁𝗵𝗲𝗺 𝘁𝗼 𝘀𝗲𝘁 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗴𝗼𝗮𝗹𝘀: If it’s important to them then they should save towards it and get it themselves or contribute towards purchasing it.
Are you good with money what has helped you? Are you teaching your children to be money smart?