FINANCIAL KIDS

EARLY FINANCIAL DISCUSSIONS TO HAVE WITH YOUR KIDS

June 28, 2019

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I'm Gabby — health coach for women. I'm here to help you lose weight the way you want to live it.

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The problem I see is where parents never take the time to teach their kids about money, how to save, invest, plan and spend but expect them to do well with their finances when they get to the university, NYSC and finally when they are on their own.

Kids mostly want to have fun

It makes no sense to me. Home Economics, Business Studies, Commerce, Accounting subjects in the Secondary School isn’t going to cut it. It is not even enough to help with their understanding of the business world, and definitely doesn’t cover what they need to be financially secure.

Intentionally guiding your kids in the right direction about personal finance management has far-reaching effect as it can positively influence their ability to think strategically and develop their decision-making skills. They will learn early to decide between options which is a legacy that you want to bequeath to your children.

Some of the concerns that most parents experience in discussing about money with their kids are:
Will they make their children too money-conscious? Will it affect their financial outlook to life? Will their children become stingy?

The list is endless but they end up leaving their kids to their own devices. By struggling on their own, the results are most times not positive.

For the ones who want to start their kids on a good early financial literacy their question is when they should start having financial discussions with their kids.

Please take note that it starts when you aren’t even conscious of it. You are already having conversations without being aware of it.

Kids learn by

i. observation,
ii. instruction and by
iii. conscious learning.

So, before you begin to have a money conversation, most times one/all of the 3 methods has occurred and so intentionally discussing it with them helps to solidify the message you want to put across or correct any misconception.

Kids need to learn early about the value of money and power of savings. Savings at this stage helps to teach them restraint, develops their strength of character and rewards them with seeing something grow.

1. Teach them about saving to buy something of better quality as opposed to a toy that they would use for a day or two. (Although their ages matter) You may give in sometimes for them to have the experience but then you use that to your advantage to drive home the message. Of course, never in a taunting manner.

2. Talk with them about the importance of giving and ask them who they would like to give to. Help them practicalize it.

3. Have them draw up a need vs want list and discuss with them about what a want vs need is.

4. Give them an allowance and let make some spending decisions of their own. Ask them the reasons for some of their decisions. You will hear a lot of interesting things.

5. Guide them in setting short- and long-term targets/milestone for bigger purchases. Draw up a savings plan for your kids and help them pay into the bank money’s that receive as income.

Talking about money could be awkward for some but introducing them early to money allows them to gain confidence and be able to make right choices as it concerns earning and keeping their money.

So, do you talk to your kids about money? Please share in the comments below

#moneytalks
#earlyfinancialliteracy
#intentionalparenting

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