Ask A Mum : How Do I Teach My Child About Money?

Q: How do I teach my children about money? I realized I already have a difficult relationship with money and I have no idea where to start.

A: Catherine Ombeva, Mother of one advises:

My daughter is currently 6 years old and I am determined to equip her with knowledge on money management by the time she is an adult. I first teach her by example. She sees me working and sometimes says “I don’t want you to work so much.” I am then necessitated to explain to her that she should actually join in because that is how we afford a good life.

Aside from giving her my time I explain to her that I have to go to work or else there won’t be money for school fees, vacations or nice things.

That way, she understands that there is a direct correlation between money and work. I also give her ‘jobs’ around the house like chores. Occasionally, when she has been exceptionally helpful I will reward with money. I do not always give her money for housework, but I link her allowance to doing actual chores.

I bought her a piggy bank when she was about three years old and whenever she gets any money she puts it in there.

When she gets crazy about wanting something I tell her,” okay let’s empty out the piggy bank.”Then I have to explain to her that the value of the money in the piggy bank is not enough to acquire what she wants. She then learns that she will have to work a lot harder and save for a longer time. When you and your spouse have different attitudes towards money, it is important to iron it out.

Discuss how you will communicate your values with regards to money to your kids.

If one is lavishing them with expensive gifts and the other is trying to teach frugality, it can be confusing.  If your children spend all their allowance before the next ‘pay-day,’ do not give them an “advance.” Let them learn that deprivation follows impulsivity. Show them the bills you pay such as water, garbage, electricity, insurance and food so that they understand that the money you earn is not all for play. They also learn on how to prioritize.