Financial literacy is an important part of life and if established early, it might help avoid reckless expenditure.
While it is easy to fall into the habit of unnecessarily using money, we should be conscious to teach our little one’s proper ways to handle money.
By doing so we would be equipping them with the right tool they need in order to form a good relationship with money.
While they might still have money from the festive gifts, why not teach your kids good ways of money handling and set a good financial tone.
Financial and banking institution Nedbank suggests you:
- Teach them to set goals – if your goal has an interest in an expensive item, saving money would be a perfect way for them to get it. Explain this to them as it might make them eager to stick to the saving plan.
- Start with a savings jar – a money jar is a perfect way for your kids to save money. You can teach them to save a portion of their allowance or money receive from family and friends, get them to watch it grow afterwards.
- Open a savings account – Once your child’s money jar is full Nedbank suggests you open a child friendly bank and start teaching them about banking.
- Let your kids learn from their mistakes – your role as a parent may be to guide your kids not to make mistakes, but sometimes mistakes are good in order for them to learn, shared the banking institution.
- Lead by example – kids learn by seeing and if you want to teach them to save you have to also save yourself. The financial institution suggests to also have your own money jar if you are to introduce money jars.
Also see: How to make financial literacy fun for kids
