CHILDREN AND FINANCE

As a parent or guardian - including aunt, uncle, and neighbour, we know the responsibilities and commitment that comes with caring for children, especially the financial aspect of it. How then do we ensure children -in their child-like state- are trained to be financially aware?

Children, by nature, are spenders. And that is why adults should be there to guide them to reduce such spending habits. While we would want for our young ones to enjoy the finer things of life, we need to guide them on being financially responsible. Nobody would like to hear about their child using his or her tuition fee to buy a new pair of shoes or wig, instead.

Financial literacy is a key lesson all parents should give their children, as this will likely impact their well-being (in adulthood).

Getting Your Child Started on Financial Literacy

Once you have helped your child to identify money -cash, receipt, card or electronic transfer- help them understand the need for saving. Usually, when children see their parents with money, they tend to believe it is for spending. Make them see that money is for saving, as well. That way, you are instilling discipline and delayed gratification in them. Every child should have a piggy bank (or kolo if you like. LOL). And when they put in money, encourage them with words.

Help your child understand that they have to live within their means. Let your child understand that they may not have all they want anytime, some may require planning and savings and others are outrightly unnecessary or extravagant.

Teach your child financial literacy through giving. Involve your children in charity projects, by encouraging them to use a part of their savings towards a noble cause. As they grow older, it helps them to understand that money can be used to make the world a better place.

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Make opportunities for your children to earn more. I remember when I was in primary school, I helped my older siblings to wash their socks, and they paid me afterwards. Parents can encourage their children to do more house chores and pay them (Nigerian mothers left the group chat). It does not have to be every time, it is just a way to encourage and appreciate your children.

Credit: Punch newspaper

While it is good to save, also teach your child about investing. Through their savings, children can contribute towards their trust fund (educational). Please open a bank account for them, and depending on your agreement on when the piggy bank should be opened (quarterly, annually), let your child accompany you to a bank to deposit their savings- I am sure they would also find some investing ads in the banking hall. Get them child-friendly financial books to get them started on investment.

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Finally, while you are teaching your child good financial behaviour, be a financial model yourself. Your children watch you, even while you are advising them. If you complain about how the economy is affecting your finances, but still decide to go on a shopping spree (YOLO), you would be confusing your child.

Additionally, while encouraging your children to do more chores, join them and engage them in conversations. They also learn teamwork in their knowledge of financial literacy.

Your children can make good money decisions when they see you doing the same. Mean what you say, and say what you mean- be consistent.