Growing up, most of us were never taught real life lessons, especially financial lessons.Instead we spent most of our childhood learning about the Pythagoras theorem and calculus, remember those? 🌚
But in the real sense, how useful were those lessons? How often do we apply these lessons in our day-to-day lives?
How many times have you wished you learned more about how to manage your money at a young age?
Ahead of this year’s Mother’s Day, we have an amazing gift for all moms. We come bearing financial tips you can teach your kids or younger siblings so they learn financial independence at a young age.
Why is it important, you may ask?
With that said, let’s get right into these important lessons:
You know us, we always insist on saving some money, I mean it’s our brand’s image, so why not cultivate it with your kids?
In this case for the very young kids, you can buy them a piggy bank and have them constantly add some money to their weekly or monthly allowance.
It is important to note that, when kids are asked to save with no goal it may be pointless, so give them a reason to do it, be it for the new PS5 or a barbie doll of their choice or even to go to the mall with their friends. This will motivate them to save more and consistently.
Such a kid will grow up with a positive mentality toward saving money.
Children learn by example. They tend to emulate most of their thoughts and behaviors from their parents and other people around them, so if one of their parents is a reckless spender, chances are very high that they will turn out to be an overspender as well
With that, it is important to teach them good habits by practicing them in their presence.
For example, writing a shopping list before you go out shopping and sticking to it. You can also plan their birthday party with them, give them a budget, prepare a checklist, and let the kid understand the value of each spend on their birthday.
Have you seen those kids shouting and crying at the supermarket wanting a specific toy but the mom won’t budge? No one wants to be that parent. Impulse buying can be controlled. You can let your kids understand if they want to but something, they should either save for it or wait until your budget agrees with it.
Some families gift their kids money in their Christmas cards or even birthday cards, they haven’t earned that money; it's a gift and it’s important for them to understand that.
Team them the value of money by showing them how difficult it is to make money. Give them jobs you’d sometimes outsource, for instance, mowing the lawn or washing the car.
These tasks could also be ordinary house chores, but either way, they will still learn that you need to work to make money. This will instill financial discipline as they will value this money and try not to misuse it.
Let the kids grow in the abundance mindset instead of the limitation mindset that this “There’s no money” statement brings out. Let the kids understand financial priorities and how important it is.
If your kid spends all his savings on sweets for his/her friends , give them space to make this mistake. But help them learn from it, and explain how this can damage their savings in future. With this again, they'll realize the value of money.
If you equip your kids with this information, they will be in a great position to face the Kenyan economy.
Share this with all the moms (and dads) you know so their kids can also start their financial literacy journey early enough.
If you don’t have kids, save this for later, you never know. 😉