Durban - July is Savings Month, making it the ideal time to share financial lessons that you have learnt with your kids.
The finance lessons that you picked up could be from your parents or from what you read online.
It is important to teach your children good financial habits from an early age, and while you may not realise it, you have already imparted financial lessons onto your kids through them observing you.
Giving your kids a hands-on experience of saving may be more exciting to them than just talking to them about it.
Opening a bank account for your kids can give them practical experience by allowing them to save their own money and track their spending.
African Bank offers five financial lessons that you can share with your kids:
1. How to save
While your kids are still young, start a savings account for them and explain how important low bank fees are and why high interest rates matter.
Instead of giving your kids monetary gifts or an allowance for their school tuck shop, put the money into a Savings account and let them start using their own card.
2. The difference between short- and long-term savings
Teach your kids the difference between short-term savings and long-term savings and how they can set goals for those savings.
For kids, a short-term savings goal could be Friday night takeaways, and a long-term savings goal could be buying a new PlayStation.
3. Finances don’t have to be boring
Topics such as investing and saving money might be as exciting for kids as the topic of gaming. Therefore, parents need to make the financial lessons fun and engaging. Online banking is a way to keep your kids engaged.
If they have their own smartphone or tablet, they can download a banking app that will allow them to keep an eye on their money and be involved in the savings process.
4. The value of money
School fundraising, where kids can sell their goods or doing chores around the and getting paid for it, are some of the ways that kids can earn their own money. The money that they have earned can be deposited into their own savings account.
Children will appreciate the value of money when they have worked hard to earn it.
5. Money management
An important financial lesson that you can teach your kids is money management skills.
Teaching your kids about tracking their spending will teach them to be mindful of how much they are saving and spending each month. This will make budgeting a breeze for them in the future.
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