“Children are our greatest treasure. They are our future.”
~ Nelson Mandela ~
All parents understand what the financial rollercoaster feels like. Children do not. All our children see are the days and nights that mom or dad are worried about something.
Food, clothing and toys appear on the best of days. They ask for things and they are given their hearts desires. Perhaps it may only be at Christmas time or on a birthday when they receive what they asked for, but they still get what they asked for with little to no effort. This perception we are teaching them is one of, simply ask and you will receive.
We know money does not appear when we snap our fingers, throw tantrums or wish upon a star. If it did work like that, many more adults would be throwing their toys out the cot. Why is it then that we do not empower them with financial education from a young age?
The Psychology Behind Not Teaching Your Child about Finances
Best-selling author and clinical psychologist, Dr. Shefali Tsabary explains that all parents who understand the punch of financial troubles unknowingly project a sense of scarcity on their children. The children continue this cycle of financial blockages throughout their own lives. As a mother, Dr. Tsabary explains that she tells her daughter that there is always enough for everything that she could ever want, but that it will not always be that very moment. In this way she empowers her daughter through learning about planning, saving, and steers her away from impulsive actions.
There is no prescribed time to begin making our children aware of money, however, the younger they can begin to grasp the concepts of good financial habits, the better.
8 Tried and Tested Methods of Boosting Your Child’s Financial Future
Debt Rescue experts have sought out the best methods to teach your child about financial matters. Even if you choose to practice one of these methods every month, you will be empowering your child’s future.
1. Till Slips and Calculators
Just getting the calculator out and letting your little one check if the till slip is correct, is already teaching them. You can also:
· Ask your child to check the prices of each item and then pack it away.
· Let them call out the items that cost the most, and those that were the cheapest.
· Ask your child to see if there were any items that they thought that you could do without and let them calculate what the savings would have been.
2. Jam Jar Piggy Bank
A piggy bank should be a necessity for your child, but a clear jam jar works a thousand times better. When children use a clear jar, they can see the money growing. In a piggy bank they throw in the money, and it disappears. You can also use different jars for different things. Put stickers on the top describing the goal, such as toys and smaller items, a PlayStation may have to be a few jars.
3. Dining Out or Cooking Together
Going to a restaurant may save the time that you are cooking, but prices have skyrocketed, and children prefer being involved in the cooking experience. Comparing the price of eating out and the ingredients to cook food is a great way to show them why you do not always go and eat out. If you have lost your till slip for the prices of food, you can use the inserts in the newspapers for them to add up the ingredients.
4. Ownership Worth
Children do not understand the worth of the toys and items that they already have until you show them. A great way to do this is to ask them to think how much each toy costs. You can also find the toys online, and then let them add them up and see how much money their toys are worth.
5. Encouraging Charity
It is always important to instill understanding, kindness, gratitude and sharing in our children. One way to accomplish this is to make a second clear jar for a charity of their choosing. Show them that they should save in their own jar but taking a portion of their money and placing it in the jar for a good cause will change the way that they see money.
6. Kitchen Shop
All those snacks and sweets that kids crave can be turned into a good financial activity. Instead of having them take what they want, when they want, place a sheet on the fridge or the cupboard with the prices and allow them to buy what they want from their pocket money. This way the sweeties may even last a lot longer.
7. Chores Can be Bought
Our last one is a little controversial. Some parents choose to use this method and others steer away from it. It is up to you. You can make a list of all the chores that you could ever want them to do around the house. Give each chore a price and place this list in a visible area of the house. When you want your child to do a chore, you can buy these chores from them. This way they learn to appreciate their money because they worked for it, and you get them to complete the chores around the house, with a smile.
8. Open a Savings Account
Opening a savings account is an excellent method to introduce bank statements and financial growth to your child. They can even start their own file to see how their money has accumulated over time. While clear saving jars are great, when the jar is full it can be deposited into the bank account. Taking your child to the bank and allowing them to do this with you will show them responsibility and teach them how money works beyond the home.
How many of these activities have you integrated into your household?
Let us know and inspire parents across the country.
Competition Time!
Have you submitted your little one’s video on how they understand finances?
1st, 2nd and 3rd prizes win R500 toward their savings as well as having their videos showcased on our pages.
Let your little ones be an inspiration to other children to become financially aware.
Visit our competition page here.
We look forward to seeing your amazing videos!