It is important to pay particular attention to passing on key life-transforming principles to our children in their foundational years when habits are formed. Teach them the way they should go includes focusing on raising successful children and instilling life-long values in them and not just being focused on providing for their welfare and educational needs.
If a child forms the habit of saving for the rainy day early enough, it would go a long way to determine how he handles his or her finances in the future. For instance, whenever such a child receives cash gifts from family, friends or as an award, he/she would be anxious to put such funds in his piggy bank, ask mummy or daddy to save the money in his kiddies saving account in a bank or an investment management firm, or those children that are savvy would ask their parents to buy them shares.
Recently I listened to a programme on a local radio station and the guest on the show was actually a 10 year-old girl who is presently working as a volunteer at a renowned bookstore in Victoria Island. Her proud parents who accompanied her to the show informed the presenter that they chose to encourage their children to take this path so early in their lives so that they become confident and responsible adults in the future. The children also took sewing and cookery classes. To deter the children from squandering the little they earned, their father promised to double their pay if they did not spend it for a certain period. Afterwards, they started consciously educating the children on the various investment options available to them especially buying shares and also the possibility of receiving dividend income in the future. To their surprise, after a while the children stopped making frivolous financial demands which reduced the pressure on them as parents.
The story above may be met with mixed feelings by a number of us. With insecurity and kidnapping looming, there is also the fear that the children would lose their childhood so fast they might become ‘uptight’. Of course, your parental instincts would kick in naturally and before your child ventures into such, you would ensure that the environment is a secure and non-abusive one. That said, the key take home for me was that the parents were decisive and most especially had a united front; mummy and daddy were speaking the same language with regards financial discipline. The children also found it easy to inculcate this value because their parents demonstrated same. Our children learn so fast, most especially in the little things we do. If for instance, you give-in each time they want something or you are more of a spontaneous buyer then they would simply copy that as a value – a way things should be done.
As we celebrate our children, let us be deliberate about teaching them financial discipline early enough and make them realise that delayed gratification is not a ‘punishment’ rather assures them of getting more than what they consciously set aside today when tomorrow comes.
Written by Tope Omojokun, Asset Manager
For more information on opening an investment account with our partner Investment Company send an email to contactus@tst.tst.lagosmums.com
Photo Source: www.50shadesofblack.com, www.featurepics.com
