Teach Children Personal Finance
This is a topic I love yet many consider sensitive. Let’s talk about how we can transform the next generation to a better one in terms of personal finance.
Me I failed flat because I was not oriented at a young age not even in my early youth. Better late than never, as a mother, I have started orienting mine. God willing this skill will help him when am long gone.
Is it possible for pre-schoolers to begin learning about money? Yes!Let’s share how we can salvage that.
1. Use of cartoon character jars to save.( Mr Piggy)
Commonly know as piggy bank across the globe is what is used in helping the child learn the value of saving/keeping money for future use. Mr piggy works across all ages but most especially children below 6 years.
When that child clocks 7yrs, consider a clear jar in order to help them know that money grows (increases)when it is kept. This will stick in their mind as they will witness the jar get filled from zero till opening date. So, let my friends save money and watch it grow. It will help them in future.
2. We learn from You.
Away from finances the youngsters copy from you each and everything. These little chaps are watching you. So if you just spend, they take it, if you plan and manage your finances, chances are that they will take it from you. What example are you setting for your children?
3. Show them that you spend to buy them things they need.
Mummy, you have to go beyond saying that you spend 20$ to buy that race car, his favourite Lego character. When it comes to going to the store to buy stuff, let them pick a few bucks from Mr Piggy, they will notice a reduction. At the store, let them pay for themselves. The practicability will have a lasting impact on this child in terms of finances in future.
7 yrs+ need to know the following:
1. Opportunity Cost:
The African way is to make the child choose from the need and want. At this age, your Children should be able to weigh and make decisions and be able to understand the possible outcomes. In other word it’s another way of saying that when they buy their favourite toy, they will not have enough to buy that pair of skates.
2. Pay them commission instead of allowance.
I have learnt to pay for the services offered by my children when they do house chores. This in a way has killed their appetite for asking for handouts from me. They also no longer throw tantrums when I tell them I do not have extra out of my budget. This could work for you too. Money worked for is sweeter and better than free money.
3. Discourage Impulse buying.
In my country, most streets have hawkers with beautiful children stuff. My children used to request to buy time and again until we started talking about personal finances. Am enjoying my space because they have learnt that planning and budgeting is a must for everyone in my household. With this kind of delay chances are that they will have changed their mind by next day.
Now that you know, what next?
The number one problem in today’s generation is lack of financial literacy. If you agree drop me a comment below and in case you have a query, i will be more than happy to help.
To Mum and Dad struggling with finances, no job, no meaningful networks, no learning and training guides to take you to where you desire to be, then follow this link and enjoy your ride to financial freedom. Click Here