As millions of South African learners head back to school. One of the biggest lessons they need to learn in life to assist them succeed is financial literacy, which needs to be first taught from home. says Stian de Witt, executive head of financial planning at NMG Benefits.
A Cambridge University study suggests that by age 7, that’s when kids are able to develop a basic understanding of financial behaviours they might need in their adult life.
“Building a strong financial foundation from a young age is critical. Even legendary investor Warren Buffett credits the early money lessons his parents taught him that helped set him up for success. That’s why it’s so vital that we succor our kids build a healthy relationship with money from an early age. said De Witt.
Below are a few simple ways to instil financial habits in your child from an early age.
It’s never too early to start
Talking openly about money matters with your kids will build their financial awareness. Include your kids in conversations about your monthly budget, income, and expenses from a young age. Exhibit them how to prepare a budget. Acquire them to calculate the tip on a restaurant bill. Secure them involved in choosing the best grocery items based on cost and quality. “These may seem like trivial tasks, but they every succor design a child financially savvy from an early age,” said De Witt.
Tutor your kids to budget
Encourage your kids set up a simple age-appropriate budget – maybe one third for spending, one third for saving and one third for giving, for example. Or open a savings account for them and deposit a portion of their pocket money into it every month. “When they start to see their money grow, they will start understanding the value of saving, compound interest and budgeting,” says De Witt.
Set a apt example
It’s not enough to simply tutor your kids about money: their biggest influence is the way you discuss and handle money around them. “Children learn by watching you. It’s no use teaching them to budget the one day and then going on a shopping spree the next. You’ve got to note them what marvelous financial habits survey like,” says De Witt.
Encourage your kids earn money
Don’t just give your kids pocket money without requiring them to carry out something for it. The sooner they learn how hard it is to earn money, the sooner they will learn to be financially independent. Obtain them to wash the car or mow the lawn. And if they only complete two out of three chores, only pay them two-thirds of their pocket money – and clarify why you’re cutting their pocket money.
For older kids, packing grocery bags or working as a teller or a waiter doesn’t just tutor money lessons. It teaches how to grasp instructions, work with others and handle workplace stress.
“Educating your kids about money takes time – but it will instil excellent habits that will serve them well for the rest of their lives,” said De Witt.
CLICK HERE to submit your press release to MyPR.co.za.
Author: T M from ByDesign Communications on behalf of NMG Benefits.
Wheels
“Personalized interactions greatly improve customer service and let customers know that your company cares about them and their problems.” ~ Oscar Auliq-Ice, Happy Customers
Dandelion
“Businesses must approach every support interaction as an opportunity to acquire, retain, or up-sell.” ~ Oscar Auliq-Ice, Happy Customers
Twinkle
I\’m not doing my philanthropic work out of any kind of guilt, or any need to create good Public Relations. I\’m doing it because I can afford to do it, and I believe in it. – George Soros