Heritage Month is the ideal opportunity to introduce a new family tradition of good money management, something that will be handed down from generation to generation, according to Lindiwe Miyambu, Group Executive: Human Capital, African Bank.
Miyambu said: “If you are good with money and use financial tools like budgeting and investing to create financial peace of mind, then start involving the whole family in good money management.”
“Being successful is also a heritage that future generations can benefit from. This is why teaching children good money habits from an early age is so important.”
Here is how you can teach age-appropriate money lessons to your kids
Age 3 to 10
– Create excitement around saving by giving your kids a see-through piggy bank to save so they can see their money growing.
– You can open a savings account for your child but make sure that account has the best possible savings interest rate.
– Using a shopping list and a budget when you go shopping will show your kids the importance of good money management, and it is an opportunity to set a good example.
– Children that want to buy something need to take money from their own piggy bank and physically give it to the cashier when they pay for the goods.
Age 11 to 16
– Don’t just hand out pocket money. Instead, encourage your children to see the money as “commission” for tasks or chores that have been completed. This is an opportunity for kids to see that money is earned and not simply dished out.
– Help your children avoid very expensive impulse buys even if they have the money for it. Instead, parents should open a high-interest-bearing savings account for their child so that a portion of their “commission” is saved each month.
Age 17 to 20
When children reach this age, they may have started a job and are already thinking about buying a car or moving out on their own, therefore the need to:
– have their own high-interest savings account and know what their financial goals are.
– start planning for the future by investing money in accounts like a money market or fixed deposit account
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