Sanlam Reality
Seven tips to secure your child’s financial future
There’s never been a greater need for parents to give their children a solid financial foundation. For those who are unsure where to start, here are a few tips (and fun ideas) to guide you in having this conversation.
Fun tips and ideas
Tips to secure your child's financial future
1. Encourage saving from an early age.
Promote this important financial habit by rewarding them for saving – e.g. match every R100 they put away with something extra, to make saving attractive while teaching them the value of money and patience.
2. Share stories of successful family members
Share successful family financial stories to teach them about smart money management. Identify a family member who made wise financial decisions early on, and share their story.
3. Help them track small expenses
Help your child keep track of small costs, like buying a cool drink daily, to plug any future financial leaks they may develop. A great idea is to pack juice or water in their school bags to replace the cool drink and save that money for something they really need or want.
4. Openly discuss debt
Discussing debt is another crucial aspect of financial education. To make it more relatable, use board games like Monopoly to illustrate the consequences of borrowing.
5. Take a hybrid approach to money
Complement digital tools with tangible systems – e.g. the ‘envelope method’, allocating cash to envelopes for different purposes. This will help children grasp the concept of budgeting and the value of hard cash.
6. Lead by example
Acknowledge what you don’t know and get the help you need to instil money management fundamentals in your kids, especially if you didn’t receive adequate financial education when you were growing up.
One last tip...
7. Let your kids live with confidence
You don’t have to explain everything about your finances but do involve them in some important aspects – e.g. explain why you can’t go away for a specific occasion and also organise a family break the very next weekend.
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