Start Building your Future Knowledge.

Just as learning how to tie a shoelace or tell the time is a cornerstone to your child’s education, so too should learning about money. Setting up the right money habits from as early as three years old can set your child up for life.

Money is fundamental in the daily ins-and-outs of our lives. It’s what defines where we live, what we eat and how we express ourselves through clothes, our hairstyles, and accessories. Making sure we teach our children how to manage their finances is a crucial and determining factor to their everyday wellbeing.

So where do you start?

Moneyweb has a great article on teaching your children about money according to their age group.

We’ve summarised a few of our favourite points:

Children aged 3-6 years

• Help your child identify the value of the different coins and notes.

• Introduce them to the concept of pocket money.

Children aged 7-10 years

• Teach them to make informed choices about how and where they spend their money.

• Explain how money is earned and accumulated, whether it be from a salary, owning your own business, earning rental income, prize money or inheritance.

• Open a bank account so your child can earn interest while they invest.

• Introduce the concept of saving

Children aged 11-13 years

• Saving up for a wanted item is not the same as saving for the long term.
• Explain to them that the sooner you start saving, the faster your money starts growing.
• Do not lend your child money to purchase an item. Delayed gratification and saving up to buy something of value teaches them tenacity and persistency.

Children aged 14-18 years

• Teach them to manage their own money by giving them the responsibility to cover certain expenses from their pocket money like data, social activities, or fast food.

• Using a credit card is like taking out a loan.

• Re-enforce the concept of not spending money you don’t have – don’t buy on credit. This is probably the most important concept to teach.

• Teach your kids about investments.

Children aged 18 years and older

• Introduce your child to the concept of a financial advisor, and setup an appointment with one for them.

• Teach them that it’s essential to save at least six months’ worth of living expenses in case of an emergency.

• Teach them that the sooner you start saving for your retirement, the faster your money starts compounding. Save at least 15% of your salary when you start earning.

Source moneyweb.co.za