Raising Money-Smart Kids.

Many parents received conflicting advice or no advice at all on how to teach their children to handle money. One old time approach is to ensure that children never get into contact with money in order to avoid “getting spoilt.” A woman who is now a parent narrated how she got some money and bought an exercise book when she was still in lower primary. When she dashed home to show the purchase to her parents, they were instead concerned that she could get spoilt by money and gave her a good spanking.

Some parents and guardians still brave the queue to pay university and college fees for their dependents. The reason usually is not because the money might be stolen from the children but rather because the parents do not trust the children with money. The question is how will these children be trusted with their own salaries, when they get jobs after college?

Here are a few ‘alternative’ tips for parents who want to pass on wholesome money skills to their children. Like the old book states “train a child the way they should go when they are young and they will not forget it when they are old.”

Talk about money with your children and allow them to ask questions in order to learn.

Teach your children good buying habits by taking them along for shopping. The child should be able to observe you using a shopping list as opposed to buying on impulse. Let them participate in collecting receipts and invoices that are later used to record expenditure on household items. Children will learn that parents fit purchases to available resources and prioritize when there is scarcity. Shopping together helps children to understand pricing, quality and accountability.

As early as possible make children realize the importance of saving. Many families over the decade have utilized the piggy bank until the child can understand the concept of using a bank account to save. One mother with young children gives them little money to keep over night or for two days and then ask them to give it back to her. This teaches them the importance of keeping money which can later be extended to saving. It is useful to take the child along and let them watch you deposit money into the bank account and not only watch you withdrawal it from the ATM.

Make children realize the importance of sharing resources or giving to those who are less endowed. This could be in kind and or cash. A key truth about finances is that if you give, you receive more. Giving also frees us from being enslaved to money instead of using it as a tool.

Make children know that money is not only worked for but can grow when invested. Buy a hen or goat and assign it to the care of particular child and let them participate in the care of off springs. Buy shares in trust for them; help to