Here are five must-dos for involving your kids in money matters:
1. Start by getting them to understand the concept of setting goals and saving towards them through their own management of money. It’s important to have an open discussion with your children about your household budget and expenses, and for them to know that you can't afford everything. Also, whether you decide to give your children a monthly allowance or you’d prefer to enable them to earn money ad hoc by doing chores around the house, let them learn the basics of budgeting, which can include practical trade-offs. For example, when it’s their birthday, they can choose between having a bigger party or a bigger present.
2. Set family goals and include your kids in aspects of the planning. If a holiday is on the cards, agree as a family to cut back on expenses where possible to save for the trip.
3. Help your kids to differentiate between a want and a need. Parents can assist their children to avoid falling into the debt trap in later life by having a clear view of essential costs versus non-essential costs.