Do you have an idea for The New Times to cover? Submit it here!

Ways to teach children about money management

Children should be given a chance to decide how they spend the money they save. / Photo: Net

Grooming a child into a financially literate person is one of the best things you can offer your kid as a parent. 

Learning basic money values at an early age gives a child an opportunity to start knowing how to handle money responsibly, and this gives them greater chances of making wise financial decisions.

 

Finance manager Justine Uwamwezi says given how important financial skills are in life, it’s crucial that a person gets them early in life. 

 

Parents, hence, need to teach their children important financial lessons to help them live financially fit lives, Uwamwezi says.

 

One way of doing this, she says, is for parents to model good financial behaviour.

“As a parent, ensure to get your financial state in order because kids learn from what you do. Spend reasonably, pay your bills on time and live within your means. This will set a good example of what it means to be disciplined financially,” she says.

The finance manager also points out the need to give children little payments or allowances for the small chores they do.

This will teach them that money is earned and that for one to earn enough, they have to work hard and smart to get it, she explains. 

“Children should also be given a chance to decide how they spend their money. This helps you as a parent to track your child’s spending habits and how best you can groom them.”

Uwamwezi also expresses the need to have children set goals and work towards achieving them financially.

“Let them plan for what they want, help them calculate what it will cost them and guide them on how to achieve it.”

Richard Kabera, a parent, says he started teaching his children about money when they were little, and he believes it has helped them get the basics of what money is, and what it means to have or not have it.

He recommends parents equip their children with saving skills, “For instance when you gift them with a certain amount of money, don’t allow them to spend all of it. Show them that they can use some for what they need now and keep some for what they might need later.”

As a parent, Kabera says it’s important to stress the importance of giving as well.

“It shouldn’t be about earning and saving, let children know that they have to give too. Let them contribute to charity or give out to the needy in church,” he adds. 

Maureen Katushabe, a mother, stresses the need to talk to a child about their goals for using their money.

“Holding these discussions will help you guide your child on priorities they need to focus on, you will also ensure to teach them the difference between necessities and luxuries such that in future when they are faced with tight financial decisions, they choose wisely on what to spend on and what to ignore,” she notes.

She also recommends involving children in planning for the household.

“Make monthly and weekly budgets with your children, let them make suggestions, you can even go shopping with them. Another important thing is explaining to them how you make money, tell them what you do and if possible, share with them how much you earn and how you spend your earnings,” she adds.

Katushabe notes that this way, children get first-hand information and experience that will guide them in their financial journeys in the future.

“By having the right information, children will be less prone to running bankrupt or be buried in debt during their adult life.”

dmbabazi@newtimesrwanda.com

Subscribe to The New Times E-Paper


For news tips and story ideas please WhatsApp +250 788 310 999    

 

Follow The New Times on Google News