5 MONEY MOVES TO TEACH YOUR KIDS

 

Spending money comes very easy to young people, but taking the time to teach financial literacy to your kids, as well as how to manage money, can be a critical life skill that could follow them into adulthood.

As a parent, you can’t singlehandedly boost the next generation’s collective financial IQ. But you can take some steps to up your own child’s saving game by teaching them how to manage money at a tender age.

If you want your children to turn out well, spend twice as much time with them and half as much money-Abigail Van Buren

Many of us developed the habit of saving money through trial and error, and more importantly, experience.But there are ways to inculcate a saving culture into the next generation and that starts by educating children on financial literacy from a young age.

Here are 5 ways to ensure that your kids make the right money moves in future:

1.Start with a piggy bank

Purchasing a piggy bank can be a great way to teach your kids the importance of saving while giving them an easy, fun way to do it.  Tell your kids that the goal is to fill up the piggy bank with Naira until there is no more room.

Don’t give your kids money for everything they want every time, even if you can afford it.

When your kid asks for something at the store, don’t ask them to take it from your wallet just like that, let them know that they would have to work or provide a service before getting that toy they want.

Engage them in some household chores and tip them after work, that way they learn the value of ‘hard-earned’ money.

3. Practice what you preach

Kids are very impressionable, they copy a lot of your traits and behavioral patterns, even when you think they are not watching.

So the best way to teach your child about saving money is to save money yourself.  Have your own jar of money that you put funds in regularly.

When you’re out shopping, show your children how to discern between various prices and explain why buying one item makes better sense than another.

4.Start a conversation

One of the most important things you can do is to start a conversation about money and the importance of saving. Money doesn’t have to be scary or a taboo, it could be fun and educative too.

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Let your children know they can have an allowance, but it’s up to them to save up for things they really want.  In addition, illustrate how much their money can grow over time if they save. Also, highlight the difference between needs and wants.

5. Open a savings bank account

Many banks in Nigeria have made it easy for kids to be represented, they offer special savings accounts designed specifically for children, open a savings account for your child so that once the piggy bank is full, the money could be deposited in there.

By depositing the money, they will learn to plan for future purchases. This is one skill that will benefit them for the rest of their lives.