Fun ways to teach your kids healthy money habits
Here's how to teach your children age-appropriate lessons about money management in addition to getting them started with their own savings.
The earlier you teach your child healthy money habits, the better.
Here are ways you can help your child learn the importance of saving money and being more mindful of spending habits.
Performance bonuses
As your children grow older, look for practical and memorable ways to teach them “adult” money lessons. One option is to pay them ‘performance bonuses’ for spotting cost-cutting opportunities at home and at school. When you go shopping for your annual uniforms and they find a better deal on school shoes somewhere else, put the difference into savings.
Think of the future
Consider opening a tax-free savings account or a unit trust account on behalf of your child. A structured approach to saving can help your children understand the cause for which you are saving and how their contributions are making a difference.
You can also emulate saving discipline by paying pocket money on a set date each month. This demonstrates that money does not come easily and that things, such as their education, must be planned and saved for.
Double-check everything before you click
Although the younger generation has grown up with the internet, teaching them how to shop safely and wisely while online is never a bad idea.
Start by teaching your children the difference between a credit and a debit card, and which one you will be allowing them to use for any online shopping responsibilities you may assign to them.
Emphasise that transactions should only be made on reputable websites, and to make things easier, provide a list of locations where the card will be accepted. You can also advise them to put an item in their virtual shopping cart for a day or two before purchasing it, as this may lead to them realising the item isn’t necessary, or some retailers may even send a discount for that item in the hopes of closing the sale.
Giving older children the responsibility of doing their own stationery shopping (with your supervision) on occasion will teach them not only how to compare prices and stick to a budget, but also how to become acquainted with the cost of things (and how they can change over time). Hopefully, your child will understand that financial planning should prioritise needs over wants.
Assume the role of a consultant
Financial advisers are qualified professionals who commit to evaluating your current situation and help you build a realistic strategy toward reaching your ideal financial goals.
As your children gain more understanding, find out their financial goals. You want them to understand the role of a financial adviser in their personal financial planning journey when the time comes, but more importantly, to be honest with their adviser. You might consider including them in conversations you have with your adviser. Small lessons amount to big, well-informed decisions and as a parent, the ongoing lesson of being financially prepared is a gift that will reap many rewards in the future.
