|  NEWS

Let’s face it, most of us have terrible habits when it comes to saving and managing finances. We spend what we earn and don’t worry too much about having a fall-back fund. Living in this global economy has many challenges especially with the rising cost of living. We are constantly juggling our pennies to fill all the gaps. 

Is this a habit we want our kids to follow?

Teach them about money early and teach them right.

We want to teach them savvy savings habits that will allow them to be financially independent adults that are prepared for emergencies, and not follow in our ‘reactive and destructive’ financial mindset.

Perhaps if we focus on teaching our kids the right way to manage money, we can also teach ourselves and break the cycle.

It is tricky teaching kids and teens about boring money stuff. They would rather be watching tv or playing games. 

What can we do to make it more relevant and interesting for them?

  • Go Retro – Nothing beats a good old-fashioned piggy bank. Kids love putting in coins and seeing their piggybank’s tummy get full, and of course what fun when they get to empty it out or smash it open to get their reward and spend their money on something they were saving for.
  • Bank tour – Take your child along when you go to the bank to get change or make a deposit. Show them what the tellers do with your money and where it goes. They need to understand how the system works. Perhaps even get them their own junior debit card to understand how to buy things.
  • Be open about how you spend money – let them price compare with you in the supermarket. Let them see you paying bills such as utilities and mortgage payments. They need to see how money is spent. 
  • Make budgeting fun - There are many money budgeting apps that you child can download onto their mobile phones to help them manage their money, or you can even open a digital bank account for them which have savings pockets attached and show their purchases. This way, they can keep track of their spending. For teenagers, you can take them to the supermarket and let them buy the weekly groceries. Give them a list of what is needed and let them try to get everything under budget. It’s a great way to teach them how to use money wisely.
  • Money games – For the younger teens and kids, you can play money games. The most obvious is monopoly. It teaches about money and property. Or incorporate finances into play. There are many toys incorporating trolleys and groceries and cash registers. You could even help them bake cookies and sell them, teaching them about budgets and profit. *

There are probably many more ways to teach your children about money, but the most important is setting an example. If they see you spending like there is no tomorrow and not saving, then that is what they will do. They need to realise the value of money and how to work for it and save it. 

Setting a good financial savvy example, will also help you get your finances back on track.

*https://www.forbes.com/?sh=5cb56d332254

Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere adviser for a personal consultation.
* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.

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