Should you teach your children how to financially plan for their future? A lot of parents think not. They argue these are kids and therefore, would not understand the technicalities that go with financially intelligence and knowledge.
A lot other parents believe a child’s mind is a fertile land and whatever you teach them now sinks in to take roots, hence the need to sensitize them financially. They however argue you should teach these kids in a way they would understand easily.
I am with the latter school, but, whichever argument you choose to go with, knowing one or two financial secrets to teach your kids will definitely come in handy someday, so here goes:
1. Not Every Money is to be Spent
The first thing that comes to a child’s mind when he gets some money is candy or cookies and how he can splurge his new on any of these. This is where we step in to teach them to save. We should teach these kids to save a certain percent of all they get, up to half and spend the rest on whatever want.
2. Piggy Bank or Save Boxes
Most banks operate saving accounts for kids these days. But it might be a tad stressful if you had to run to the bank every time your baby saves 500 naira. This is where piggybanks or save boxes come in.
The kids can drop the money in the piggybank until it accumulates. Doing this also gives them a sense of pride when they see how much they have saved.
3. Working for the Money
This just has to be done right, or it falls flat. Kids need to know money just doesn’t grow on trees and sometimes, they have to show some little respect for it.
Granted, it is our responsibility to provide for these kids, but teaching them to value money is never a bad idea.
I learnt to respect money by the financially accountability system my dad set up. If you wanted 5,000 you had to show him you wanted the money so badly you had saved up as much as 2,000 naira. He would then proceed to give you the entire money you asked for. This way, I learnt not to spend my entire allowance but to save up for rainy days.
4. Showing Appreciation
Very few things will hurt as bad as your child being unappreciative for an act of kindness you do for them. On the other hand, if he appreciates the little you do it delights you and makes you want to do a whole lot more. Now while some children will be delighted at your input in their lives, a lot others have to be taught to show appreciation.