Time to teach the kids the value of money

AS THE economic recession takes its toll, it is the perfect time to give children practical lessons about how to manage finances, says Luzuko Macingwana, a financial adviser.

AS THE economic recession takes its toll, it is the perfect time to give children practical lessons about how to manage finances, says Luzuko Macingwana, a financial adviser.

Macingwana, of Capitec Bank, who teaches children about money matters, says parents should help educate their kids about personal finance by:

l Talking to their them about values concerning money, including how to save money, how to grow money, and how to spend money wisely;

l Helping children to learn the differences between needs, wants and wishes, preparing them for making good spending decisions;

l Teaching children about setting goals, whether saving for the movies or an iPod;

l Introducing children to the value of saving versus spending;

l Giving children an allowance to give them a sense of independence and spending power, without simply handing over the cash each week;

l Taking children to a bank to open their own savings accounts;

l Keeping records of money saved, invested and/or spent; and

l Teaching children the value of money when out shopping.

X