CHILDREN AND MONEY

CHILDREN AND MONEY

Your children are between the age of four and ten. They know how to ask you to buy them something the next time you go shopping, sometimes they ask you to buy them something you had not planned for, and you still think they are young to know more about money matters?

You are very wrong!

'Huh!' 

Yes you are.

Children nowadays grow faster than we think, at the age of four, many children know that you must have money to buy something; this is why it's important to start giving them financial education at an early age. Start telling them how money is earned, talk to them why people go to work, teach them how to handle and save money.

Wondering how and where you will start with this, here are some of the things you should do with your children at an early age to help them understand financial matters.

1. TALK ABOUT MONEY

Money talks between you and your children should not be out of bounds, don't assume that your children are very young to be involved in financial matters; children have to be natured at a very young age on how to handle money so that they grow up with healthy financial habits. It is therefore wise for you to take time and talk about money with your children, answer any question they ask, even if it sounds irrelevant, because if they ask they are curious and the early they know the better.

2. TEACH THEM HOW MONEY IS EARNED

Your children may know how to use money, but they may fail to know how money is earned. As a parent, you have to ensure that your children know how money is earned. This can be solved easily.

Look at the following conversation between a parent and a child.

Child: Are you preparing to go to work today?

Parent: Yes dear, but I'll be back early today, why do you ask?

Child: Well, you were supposed to take us out today remember?

Parent: yes dear I know, but I have to go to work so that I can get cash to take you out?

Child: Do you have to work to get money to take us out?

Parent:  Yes dear, for one to get money, you have to work then at the end of the month you earn a salary, likewise you can work for a week a day or hours and still earn for your work, and that's why I have to work every day so that I can get money to take you out, pay bills, buy food and save for future use.

Child: Ooh! I also want to work and earn money.

Parent: You do? Ok let's talk about that when I come back, have a good day, love you

Child: Bye

Parent: Bye

By answering simple questions like this, your child will know how money is earned. If your child develops an interest in earning money like in the case above, do not hesitate to find ways in which they can earn in the house.  Introduce small tasks to them and give them an allowance.  After your children understand how to earn money and they start earning something small from you, it's now time to teach them how to budget and prioritize.

3. HOW TO PRIORITIZE AND BUDGET

After your children have earned an allowance and have something in their wallets, all they yearn for is going shopping nothing excites them more than buying something with their own money. Do not let them do so without planning. this is the time you bring in the budgeting topic, sit down with your children and ask them to list down what they would like to buy and then. Out of that list let them prioritize, teach them to choose what is important, and leave what is less important. For example if your child wants to buy a birthday gift for a friend which is in two months,  help him/her realize that they still have two months to plan for that, so they can buy something else in place of the present. If you help them this way, your children will not have a problem budgeting in their adulthood.

 4. TEACH THEM HOW TO SAVE

Saving is another thing to teach your children, they are still young, they don't think of the future, but as they grow up they will need to. To help them out, talk about what they would like to buy in the future and try to explain to them that if they save a certain amount of money they will be able to buy whatever thing they want. Give them an example of what you have done or bought from your savings. Remember they are young so don't give them a long term saving plan, that will make them loos hope, let them do the short term saving plan like one or two months. 

5. TEACH THEM TO HELP

If your children will be well equipped with the above knowledge, then you are guaranteed of their financial security in the future, but there is still one thing that they will lack, and that is generosity. Not everyone is fortunate on this planet, we have people in need; teach your children how to give either to a charitable organization, a children's home, or a church. They might feel bad giving out their money but try to explain to them, or better still lead by example, contribute something as a family and donate to needy people; this will help them grow with a habit of giving to the society which is not a bad course.

A good financial future for your child depends on what foundation you lay for them, so fill free to talk to them about money, instill in them the knowledge and wisdom of handling money, and in doing this your child will have a reason to thank you later.