To successfully teach, a teacher must first understand their students. There is no better place to witness this fact at play than when it comes to kids. To teach a child, you must play to their competitive advantages and their interests.
During these formative years, their brains are not as developed as to have their own sense of individuality. Hence, children across all parts of the world, coming from all backgrounds, tend to be very much alike. To efficiently teach them any value or lesson, you must understand, first, their inherent nature.
That being said, one cannot deny these facts:
- Kids are naturally better candidates for saving
Kids are better savers. That, on its face, seems like an almost controversial statement to make. But think about it, they have no real, present spending needs. Their most urgent spending needs are met by their adult errand boys and girls, i.e., you the parent/guardian.
The food they will eat, clothes, school materials, fun materials, etc., all are painstakingly taken care of by you. The only opportunity for some level of financial recklessness comes when candy and more toys are involved. Aside from that, these ‘rich little people’ are oftentimes sorted. So, financial techniques such as saving, is, for them, much more doable.
- Children are astute observers
They are constantly watching what you do. Hence, the best way to teach your kids is not necessarily to verbally ‘say’ to them, but rather, ‘be’ to them. We cannot afford to be Solomon when it comes to our children. The principle of “do as I say, not as I do” does not work with children. To raise financially savvy kids, a parent or guardian must themselves, consistently exhibit financial savviness.
- They are all about the fun!
Take your insightful expert advice, your masterclasses, and all that jazz… When it comes to these kids, their first and foremost concern is: is it fun? These kids are all about the vibes. Depending on their age, they may not and could not possibly fully understand the implications of their actions—in this case, the act of money management.
The lessons you are trying to instil in them, the physical objects you give them to help with the application of these lessons, all must reek of fun. Things can be as simple as getting them a very catchy savings box or piggy bank. Make them come in their favourite colours, their favourite animals perhaps. When they get bored of this one, try getting them an upgraded version.
- Children are the world’s principal inquisitors. Take advantage of it
Children ask a lot of questions. It can be borderline burdensome, their capacity to ask unending questions about any and everything. Sadly, most at times, as parents and guardians burdened with the strains of lives, we tend to dismiss these questions. It is very dangerous to leave a child’s question unanswered. Build that listening and communicating power when it comes to your kids, for it is during these strings of childish inquisitions that you can slip in valuable lessons—in this particular case, financial wisdom. Having come to the full realisation of what these kids are, it is important to be meticulous in not only what you teach them, but how you teach them.
The lessons
Have conversations with your kids about money. But, even more importantly, watch the approach you adopt. When teaching children about anything—in this case, money—a parent/guardian must desist from the instructional approach. Speak with them, not at them. Steer the conversation in a way that conclusions arrived at feel as though organically generated by they themselves, not you. What this does is not only teach them the needed lessons to guard their future financial lives, but also build their confidence to be able to talk about money—i.e., have much-needed financial conversations whenever required. E.g., with their future spouses.
The physical tools
Now that they know what to do, they must have the right tools to do it.
- Money box (Piggy banks)
For children, starting from as early as 3 years and above, a savings box is a good starting point.
- Mutually agreed-upon targets
Remember that we want these wards to feel like these money decisions are organically being made by them. This is a better way of securing adherence. So together with them, agree on saving targets. They can be weekly, monthly, quarterly, and annual targets.
- Visual progress trackers
Top these saving banks and targets with interesting visual representations of their progress. Device fun paper or digital progress trackers/timetables for them to do this.
- Very, crucially, open a savings account for them
It is important that you, in this financial management journey, make your kids ‘banking’ literate at a very early age. Open a savings account for them, where they can transfer those savings from their money boxes or piggy banks at mutually agreed-upon intervals.
Letshego’s savings account, dubbed the ‘LetsGo Save- *898# account’, offers security, competitive interest rates, easy access to funds (whenever needed), and absolute convenience. There is no age limit here; hence you can open an account for your wards—of all ages. And in this digital age, where age-appropriate kids are given access to phones and tablets, these children will be able to keep tabs on their finances with our seamless LetsGo Save *898# account.
- Don’t be their pseudo-banks!
It goes without saying but don’t be their banks. Don’t be the place where their ‘hard-earned’ money goes to be spent. Children lose faith in this whole financial management endeavour when parents, at whim, spend these moneys they have painstakingly accumulated. Remember that even though kids have greater tendencies to be better savers, they are, on the other hand, not naturally disciplined individuals. Hence, for them to be able to exercise such constraints, such discipline, it is important that they are not taken advantage of.
- Teach them beyond their age
Make sure that the lessons you teach them are in tune with present and projected economic/financial trends. Investment trends, impact investing, insurance, all the varied means of effective money management tools far-exceeding the scope of savings must be taught them. And whenever opportunity presents itself to partake in these options, guide them in doing so. The Letshego Fixed Deposit account, offering financial tenures of 91, 182, and 365 days and highly competitive interest rates, is a perfect place to start your kids out on this investment journey.
Conclusion of the matter
Just as any aspect of the human experience, early exposure and tutelage has a far greater capacity of securing more impact and longevity of impact. Teach your kids the way to go, and they will not depart from it. This is not only a religious directive, but a scientific one also.
Watch the things your children associate with you. Bad money habits are like cancers. Quite blatantly, they are addictions capable of enormously changing the course of one’s life. On the other hand, astute money management that leads to future prosperity is an invaluable skill that your ward must be able to fondly trace first, to you, their parents or guardians.
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