PARENTS can do a lot towards financially educating their children.
Eunice Sibiya, head of consumer education at FNB, says assuming that finances are not for children gives them a lifelong handicap.
“While we all want what’s best for our children by ‘protecting’ them from the world of money, this can also be detrimental to the way they handle their finances later on in life,” she said.
To avoid teaching your kids bad money habits, Eunice gave these following tips.
Responsible purchases
Get your child to pay for something in the queue and also help them identify the difference between a want and a need.
Give them control
By giving your child control over their own money, you teach them about financial decisions.
Too much pocket money
Give them a reasonable amount for pocket money which encourages kids to buy something they need, but also save a portion of it.
Selection before payment
If your child finds something they really want, ask him or her if he/she can afford it. Kids have to consider how much money they have and whether the item is worth it.
Teaching your bad habits
If, as parents, we demonstrate good saving habits and spending habits on a daily basis, our children will also be educated through our actions.
It is also not only about what we teach but also what we do that shapes their behaviour.
