01 June is Global Day of Parents and this day is set out to appreciate all parents in all parts of the world for their selfless commitment to children and their lifelong sacrifice towards nurturing this relationship. It is said that the family has the primary responsibility for the nurturing and protection of children and they should grow up in an atmosphere of happiness, love and understanding.
When conducting some research around life lessons for children, Elzita Beukes, Communications Manager at FNB Namibia said that it seems lessons on how to manage finances are not taught to young children “It is important that as parents we place a greater emphasis on handling money because so much can go wrong later in life because of the mismanagement of money.”
While it was important to say please and thank you, to respect elders, never lie and have good table manners, it is also important to have financial know-how. “In a time of credit cards and online shopping, children don’t often see people buying products with physical money like notes and coins. Not seeing money exchanged for purchases makes it harder for kids to get their heads around what things cost. They might see this invisible money as an abstract and unlimited resource rather than real money coming in and out of their family’s bank accounts. Teaching children money management skills can help them to establish good financial habits that will benefit them long after they are grown up.”
“If you’re ready to start raising wise children, here are some of the most important topics you’ll want to tackle,” says Elzita. Budgeting is important and the concept of living within your means is one of the most basic principles of personal finance. An allowance can be a useful tool for teaching children how a budget works. If your children get a set amount of money each week, be proactive in helping them decide how it should be spent instead of just handing over the cash.
Secondly, make saving a priority. “If you want your children to grow up to be savers rather than spenders, you need to start building the savings habit early on. Lastly, teaching children how credit works and how to use it is one lesson you cannot afford to skip, especially if you have teenagers who will soon be on their own. “Children need to learn that buying something on credit or on account isn’t the same as spending cash and that the cost of something purchased with credit can end up being much higher because of the interest.”