According to experts, financial words should be as common to your kids as “please” and “thank you”. We compiled the following tips with the help of Jeff Spiller, Alexander Forbes’ Senior Financial Planner and Gerald Mwandiambira, Acting CEO of the South African Savings Institute.
GIVE THEM AN EARLY START
Parents often wait until their children are almost teenagers to discuss finances, but Mwandiambira suggests starting at pre-school level. “Parents need to instill money management as an ingrained habit and attitude, rather than dishing out facts about finance. As soon as children can count, introduce them to money,” he says.
PRACTICE MAKES PERFECT
Allow your little children to use cash – under your supervision. For example, if you’re stopping for a snack on the way home from school, give your child cash and let him buy what he wants. He’ll quickly learn the difference in the value of a small bag of chips and a large one, says Mwandiambira.
POCKET MONEY TEACHES VALUABLE LESSONS
“It’s generally accepted that six is a good age to start giving your children pocket money. Start off with a weekly allowance and increase it to a monthly allowance for teenagers, so that they learn to make their money last. An allowance needs to be linked to basic household chores, so that your child understands they have to earn the money. They can also start doing errands for payment from neighbours or other family members. Explain the concept of saving money to buy something they want and tell your children about the expenses you cover for the household, such as electricity, food, rent and petrol,” says Spiller.
The post Baby steps to budgeting appeared first on DESTINY Magazine.