How to raise financially savvy kids

17/06/2019

Be a teacher, raise financially savvy kids

Turn off the light when you go to sleep. Don’t waste food. Share your toys. No sweets before dinner. No drinks before bed. It’s funny how so many of the lessons we learn as children only make sense as we grow older! This is especially true with financial lessons.

The skills and habits we learn as kids have a significant impact on our financial behaviour as adults. These skills are most often taught by our parents through conversations and their relationships with money.  If you are a parent, here are a few steps you can take to give your kids the financial tools to build a brighter future.

How to raise financially savvy kids

  1. Watch what you do

Children will most likely end up following your example as they become adults. Setting the right example in your relationship with money gives your children a sound foundation on which to build their financial future.

  1. Teach them the value of money

Even at a young age, kids can understand the concept of more versus less. You can introduce your kids to money as soon as they can count. Simple things like encouraging young children to read price signs at the shops and including them in your budgeting will ensure that as they get older, they will understand how to prioritise their spending.

  1. The importance of an allowance

Giving children an allowance helps them to build money awareness. It’s better to make a mistake at 10 years old with R50, than at 30 years old with R10 000. Decide on an allowance amount that matches your child’s age and ability to handle money. Make them earn it too, through chores and special tasks. Teaching them that money is earned, rather than just given, helps them to appreciate it more and apply some thought to their spending.

  1. Help them save

Setting up a child savings account can teach your children about interest, fees and other important banking concepts. African Bank now offers MyWORLD, an all-in-one banking solution- that’s made to share. MyWORLD allows parents to create up to 5 unique Pocket accounts to share with their kids.

A Power Pocket is a separate account linked to your Primary MyWORLD account. This account has its own unique account number, pin and bank card. Parents can use Power Pockets as a great way of teaching kids about banking and saving. Because it is linked to your Primary account, you are able to see how and where your child spends his/her allowance and teach them vital money management lessons based on their spending/saving habits. And because your child will have their own bank account, they get a hands-on experience with money.

The most impactful financial lessons are learned from everyday moments, like when your child notices that you save receipts or keep a record of your spending on your phone. The opportunities to teach these important lessons are there, so take advantage of them throughout your child’s life.

Up Next

Grow your money
The flexible nature of working from home is appealing for new moms and many opt for this when the pitter patter of little feet is on the horizon.

Publish Date: 17/04/2018
Read more
Getting to know Basani Maluleke
A new era started at African Bank on 1 April 2018, the day Basani Maluleke, was appointed as our CEO. Basani follows in the footsteps of Brian Riley, who saw the Bank through curatorship and laid the foundation for the exciting future that lies ahead of us.

Publish Date: 01/04/2018
Read more
Three tips: How to use your credit card wisely
There are more than 8.8 million credit cards in issue, and more than 38 types of credit cards available in South Africa. South Africans have on average one credit card. So. Question is, are you using your credit card wisely?

Publish Date: 22/02/2019
Read more
Dad, here’s how you can be your child’s financial superhero
Fathers are often their children’s first real-life superheroes.Children do as we do, not as we say. So dads, our question to you this month is – are you modelling good financial behaviour?

Publish Date: 04/06/2018
Read more
Saving to educate your children? Get the most out of your money
There is no greater gift that you can give your child than the gift of a secure education.We all want to give our children the very best, however, ensuring that you give your child a quality education costs money.

Publish Date: 09/07/2018
Read more

About African Bank

Our mission is to be a successful Retail Bank offering a wide range of products and services to the consumers of South Africa. The people who work for African Bank represent the diverse population of South Africa; therefore we are a reflection of you, of all South Africans. We seek to provide value - more than our consumers expect of us. We promise to live our purpose 'humanity through banking' in all that we do and we are confident that we can, because 'We are You'.