As part of the ongoing A to Z Parenting tips, last week we looked at teaching children about ‘Love’, how to receive it and how to give it out to others. This week we take a look into the world of finance, and how we can teach our children to be financially literate about Money. How to have a  healthy attitude towards money and other ways they can maximize its benefits.
Money Does Not Grow on Trees
This statement has often been used for children who seem unable to distinguish the difference between wants and needs. This statement in itself does not teach children what you need them to know about money, since for them money does fall from the ‘two trees’ that live with them in the house, their parents. A child is not born knowing how to think about money, this is a skill that is taught and that parents should teach them from home. Giving them real life expereinces to learn about the art of making and spending money is the best format. A child taught to have a healthy attitutde towards financial matters is more likely to grow up knowing how to make, spend and grow wealth.
A neighbor of mine, who wanted to teach his 10-year-old son this invaluable lesson took his son with him to his company for a week. Despite the man in question being the ‘oga at the top’ The little boy spent the week helping to package the company products, load the trucks which take the products to their suppliers and manage stock. The boy reaction at the end of the week was: “Daddy, nothing good comes easy”!  Children should be taught early to budget on a regular basis and be encouraged to earn so they understand how money is made and spent. This requires your help as a parent, keep it simple for the child to understand.
Teach them to Save
Make them understand the benefit of saving now for the future. Our children must understand the value of saving money to be financially responsible in the future. Many children spend money as soon as they get it. The ‘I got to have it’ syndrome which can be seen in many teenagers who spend on the slightest impulse is encouraged by parents who just provide for anything the child wants.
We can encourage them from very young to have a home saving account, (fondly called ‘Kolo’ in this part of the World also known as a ‘Piggy Bank’). The idea of saving instills the habit of not spending everything they have when they have it. A key component of financial health and maturity is the ability to plan and think about every purchase. As children get older, open a fixed deposit/saving bank account for them and encourage them to deposit money in the account on a regular basis. You might go the extra mile to get a financial expert to advise on investment opportunities that are available for children, as children see their investments grow they further appreciate the value of investing.
If as a parent you run your own Company, get your child to work for you over the vacation periods. You could also choose to organize summer internships with Secondary Schools and Higher institutions that offer this. Money that a child receives through hard work will less likely be spent recklessly. [Read: Raising Financially Literate Children]
Keep Track of Their Savings Endeavours
It is not enough to ensure that our children inculcate a good habit of saving, we as parents should note to personally keep track of their saving endeavors. Regular check-ups on the Kolo/ Piggy banks are ideal. For the benefit of those who have a bank account, you could pay regular visits to the bank to oversee the activities of the account. You could set up automatic alerts to keep track of activities, when your child realizes there you are taking the saving issue seriously, they too will become equally serious with their saving habit.
A mother shared with us how she would always encourage her children to save N10 for every N10 they spent. This simple formula worked wonders for her children. She would regularly follow up and keep track of their savings on a monthly basis, and would also give personal ‘boosters’ (N1000, N1500, N2000), if she was impressed with what they had been able to save in any given month. Because they knew their mother was taking them seriously, they didn’t want to disappoint her. The children all went smiling to the bank when the money grew too much to keep in the house!
Buying assets such as land can also help tie down money for the child. As land always appreciates, the child has nothing to lose in the long run.
Encourage Their Ideas
If you take the time to encourage creativity you will notice that children are always brimming with ideas and some of these ideas can be turned into a revenue generating venture. If you have been able to discern the entrepreneurial spirit in your child, you should certainly encourage it going over the plans he/she has with ways of executing the plans. A simple google search or youtube will show you how many children have embraced entrepreneurship, with the full support of their parents. It will also prepare him for the future if he wishes to delve into business. So whether your child intends to start a blog, bake cookies and sell, write a book, or market products for a company, be there to encourage your child.
Teach them to Give
No matter how much money you have if your money is not touching or affecting another life positively, you are just ‘existing’ and not ‘living’. Having priorities will help the child develop a sense of responsibility and accountability and towards the people around him/her. For example we could ask our children to donate regularly to the poor and needy, teach them to give in Church or any cause that you can identify.
Money is important, but it is not everything in life. The emphasis we put on money as parents influences our children. Many parents have neglected weightier matters, such as family time or cultivating a strong relationship with their children, in their pursuit of money. Parents sometimes try to use money to buy goods to replace the time they should devote to their children. This gives children the belief that the pursuit of money is more important than family.
The Source of all Wealth is God
We should make sure our children realize that all wealth comes from God. God is the source of all lasting wealth. That is why it is necessary that every child be encouraged to give money to God in form of tithes, offerings and supporting the less priveliaged. God loves a cheerful giver, so our children should be taught and shown that they should give to God with a heart of gratitude. By giving to God, they are not doing God a favour but rather laying a strong spiritual foundation for financial freedom for their future.
