Savings, Thrift & Investment | |
Savings, Thrift & Investment | |
1861 VIEWS | |
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Saturday, December 12, 2020 / 02:00PM / Grace Adejare-Ajuwon & Chinyere Onyia for Proshare Finance / Header Image Credit: Greater Alliance
Parenting is quite interesting and equally challenging; just like every
other facet of one's life one have to master through an experiential journey.
While every parent desire to raise a physically, mentally, and emotionally fit
child, it is equally important that they pay attention to, and ensure the
child(ren) is financially aware and grows up to have a prudent and conscious
relationship with money. Indeed, the goal is to educate, enlighten and empower
them to be aware of the basics of making, managing, and multiplying money; a
goal our personal finance section is focused on, acting as a companion and aide
memoire for these discerning parents.
The first step to raising financially aware children must be the maxim - "Start Early". To achieve this, one must start early through mentoring and the introduction of money lessons as well as the implementation of financial literacy tips into their daily routine. Below are some tips on how to commence this journey.
1. Enlighten them about Money, keep their imagination alive
Talking to kids about money can be a herculean task but it can be done
by just having simple conversations around the things that happen daily. For
example, you can start with showing them the various currencies that exist and
explaining the value of each; taking them with you to buy their favourite toys
or edibles and helping them learn that money is what is given in exchange for
the items purchased, etc. Make them see that if you do not give money in
exchange then you cannot go home with the things bought. With this, they can
quickly understand the use and importance of money.
Regardless
of the method, you adopt to have these conversations, you should take
cognizance of your child(ren)'s age and what they can easily assimilate. As
they grow, you can introduce the principles of managing and multiplying money
effectively using financial products and services.
2. Engage them in Money Games and let the excitement flow
Finance might seem boring especially for young ones, so it is important
to make it interesting and fun to get their attention. An easy way to do
this is by allowing them to play money games either online or offline. You
should also make effort to participate in these games with them, so it is easy
for them to recall the experience and learn from the same. One common money
game that remains valuable in helping children learn about money is Monopoly.
3. Educate them about Ways to Earn and Utilize Money effectively
Money lessons regarding how to earn and utilize money
effectively should also be taught to ensure your wards are financially
literate. In educating them about money lessons you can use yourself and your
spouse as examples. For instance, tell them about what you do and what you get
in return. Involve them in the money decisions made at home while explaining to
them the justification for those decisions. e.g., the decision to buy what they
desire immediately they request for it or later.
You can also encourage them on ways to earn by giving them money in
return for work or tasks executed while helping them appropriately plan the use
of their allowance by distinguishing their wants from needs.
Just like adults, children will make mistakes using money especially their allowance. As
parents, remember these mistakes are lessons, less expensive lessons if they
learn them now when they are younger. If you notice they are becoming
spendthrift, call them to order and guide them on how to spend wisely, also let
them know the cons of unwise expenditure. You can make this possible by telling
them stories about some of the money mistakes you made and the negative impact
they had on you.
4. Encourage Budgeting & Sharing, and Make Sense of Planning
Budgeting is a good way to teach children how to manage
their finances at an early age. As it will assist them to know where money coming
from, where it is going,
and how to meet their goals based on their values. To guide your kids on
budgeting you need to ask them questions such as: What are your goals? What do
you need and want? How much will
it cost to meet these needs and goals?
How long will it take to save the money you need to reach your goals?
How much money will go to spending, sharing, and saving? Assist them in answering some of
the questions that way they learn and when next you ask them the same question;
they will be able to give answers on their own without your assistance. Also,
direct them on how to create a budget sheet with a pen and paper. That way they
learn how to budget and track their expenses. Responsible and prudent Sharing
or Giving should also be a part of the lessons taught to nurture in them
the attribute of generosity and empathy
Related Video
5. Exemplify Saving & Investing, Give Keeping Money a Good Name
Studies have shown that children learn faster by observing the world around
them. They often also imitate what parents or other adults do. Thus, in helping
your child become financially savvy, you should walk the talk by utilizing your
money wisely, while helping them see how you make decisions about earning and
spending your money. Since you
understand the importance of saving, you should also help them
learn to save as well by opening a children's saving or investment account for
them and helping them see how the monies saved grows. This also enables them to
appreciate how technology aids transactions.
Other Finance Videos for Kids
Related Video Links - SmartKidzLearning
1.
VIDEO: Saving Money - for Kids - Smart Kidz Learning, Dec 03, 2020
2.
VIDEO: Feranmi
Gets A New Kolo - Smart Kidz
Learning, Oct 15, 2020
3.
VIDEO: Spending
Money - for Kids - Smart Kidz
Learning, Sept 02, 2020
4.
VIDEO: History of Money - Smart Kidz Learning, Aug 18, 2020
5.
VIDEO: Currencies of the World - Smart Kidz Learning, Jul 27, 2020
6.
VIDEO: History of Money - Smart Kidz Learning, Jul 20, 2020
7.
VIDEO: What is
Money? - for Kids - Smart Kidz Learning, Jul 14, 2020
8.
VIDEO: Financial Literacy for Kids - Smart Kidz Learning, Jun 29, 2020
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