ARE CHILDREN REALLY THE FUTURE? RAISING FINANCIALLY WELL CHILDREN
A big part of life is helping to shape the future for the next generation, whether through practical examples, lived experiences or simple talks. We can’t deny that children are highly impressionable and susceptible to social patterns, so as we think about helping them to design the future that works best for them, we must take note of the values that we’re passing on…including values related to financial wellness and proper money management.
SO…HOW EXACTLY DO WE RAISE FINANCIALLY WELL CHILDREN?
The good thing is that it’s doable, but what’s even better is that we love answering the questions that will help you and your family live more fulfilling lives. So, we’ve detailed some steps that will help you raise children who are financially prudent and who are sure to make smart money moves.
Start the money talks early – Engage in open and honest conversations about money with and around your children. It doesn’t have to be the heavy electricity bill talk, but it can involve more thrilling money conversations such as savings, getting a good deal on an item or the turnaround from an investment.
More lessons – Let your children know about the various benefits of paying bills on time. Explain the impact of late payments and the effect on their credit history, what good and bad credit means as well as those effects. This is a great way to help shape financially strong futures for your children.
Encourage saving habits – A piggy bank can be a start, but this can also look like opening a savings account for your child. At VM Group we offer a ‘VM Save2Grow’ account which is a great saving option for children. Teach them how to make deposits, withdrawals, and maneuver online banking platforms. By helping them save today you’ll be providing them with a start, while helping them to develop a positive relationship with saving.
Give them a chance to earn – Whether you want to call it an allowance, pocket money, or payment, allowing children to earn their own money is a good way to teach financial responsibility. Furthermore, they’ll begin to understand the correlation between work and compensation, which is a great way to shape financially responsible minds. The truth is that we may never fully understand a concept or thing until we’ve collided with it, and the same can be said about the use of money. So, look around the house or yard, and think of little tasks that can be assigned to a child, and the monetary value that they can reap from completing this assigned task. Plus, you can throw in some added incentive if they choose to go the extra mile.
A lesson on entrepreneurship – Encouraging and helping children to explore entrepreneurial opportunities are also great ways to teach financial wellness. Through the success or failure they are likely to learn valuable money management skills, and apply those lessons throughout life. And, here’s the added benefit – through routes like these children can discover their strengths or even areas for growth.
In the end, one common thread across country, culture or creed is that children learn through socialisation and patterning social behaviours. So, encourage good money habits by displaying good money habits to your children, and help them experience a good financial future. We have experts here who will hold your hand as you hold your child’s hand and help you cultivate good money management principles. For more ways to make smart financial move click here.
