Teach your children about money from an early age and you will be providing them with a skill for life.
Teach your children about budgeting, saving, investing, reducing expenses and debt.
Set a good example, you lead by example.
Talk to your children about money. Teach them how to manage money by giving them an allowance and teach them how to save and budget effectively with their own money. Let them decide what it is they would like and then show them ways on how to effectively save and how to manage their money to get it.
Let your children make mistakes with their money, that way they learn the consequences of poor money management. Do not step in to help them. They need to understand the consequences of their mistakes.
Talk to your children about impulse buying. Teach your children to think before they buy something and to ask themselves why this purchase is important.
To teach them how to save 10% of what they “earn”. Give them a R50 allowance in R10.00 notes. It is easier for them to save a R10.00 note than it is to remember to save their money when they break the R50.00 note.
If your children receive money for their birthday, talk to them about what they would like to do with that money. Encourage them to save all of it or part of it for an expensive purchase they are really wanting.
Try to be consistent when purchasing items for your children. If you are trying to get your teenager to be responsible and have decided to give them an allowance for their clothing don’t buy clothes for them on impulse.
Teach your children about debt. Show them the cost of interest rates on debt and how having debt reduces your ability to save and spend money on other things.
Go through the family budget with your children.
Let them be part of the decision making process of what you are wanting to achieve as a family. If you want to go away on holiday come up with a figure that you will need for the holiday and come up with a plan as a family how you are going to save that money and reduce spending habits.