They say money makes the world go round and teaching your children about it from a young age sets the foundation for responsible money management in adulthood. Here are some easy ways to introduce financial concepts to your kids to help pave the way for a healthy relationship with money.

 

Start early with the basics
Children as young as 5 can start learning about the fundamentals of money. Next time you’re at a till, have your child hand over a note and receive the change. Alternatively, play simple games at home like “shop” where they can “buy” things using real coins to introduce the fact that most things cost money and they need a certain amount to make a purchase.

Introduce saving and budgeting

As your kids get older, giving them a little pocket money to use in the real world is a great way to introduce the idea of saving and budgeting. If they want something they can’t afford, they’ll soon learn how to save. You could also consider attaching their pocket money to chores so they understand the concept of earning.

Encourage them to choose wisely
It's the holidays and you want to have fun without breaking the bank. Explain this to your children and include them in making savvy choices. As an example, ask them if they really want to use up half the budget on a whizz around a go-karting track would they rather play 5 rounds of mini golf that can be spread out during the week? This way, kids can learn about budgeting as well as the value of money.

Take them to the bank
Many South African banks offer accounts to children under the age of 16. You can deposit their pocket money into their account, there aren’t any monthly fees and they’ll have their own card to swipe. It’s a great way to teach your children how to save and earn interest. You can also show them how they can make their money go further by comparing prices.

 

Talk to them about money matters
Don’t wait until your children ask you about how credit cards, interest rates or loans work. Make a point of upskilling yourself on money matters and discussing it with them in their teens. Your goal is to ensure they become young adults who understand the ins and outs of what it means to be financially responsible.

Lead by example

Children learn a lot by observing their parents. Model good financial behaviour by budgeting, saving, and making informed spending decisions. Don’t be afraid to discuss financial goals and challenges openly to provide a realistic view of money management.

A last word about life insurance   
While we’ve got you if you’ve been thinking about money matters, now’s a good time to get a quick quote from MiWayLife. Our 4-in-1 policy includes comprehensive life insurance, an accelerated funeral benefit, terminal illness cover and funeral cover for all your family members. As with teaching your children about money, getting life insurance as early as possible is always a smart move.

 

Did You Know:

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