Smart tips for teaching your children personal finance

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‘Children are tomorrow’s leaders’ is a well-known adage that underscores the need for parents to provide their children with quality education. Despite quality education, many young adults and even the elderly struggle when it comes to managing their personal finances.

Personal finance is an important life skill that every child should learn, but unfortunately, it is not always taught in schools. That is why it is important that you, as parents, should take charge and teach your children about personal finance.

Many conversations on the problem of poor financial decisions take root in not having early access to money education. In fact, a national survey shows that young adults form the bulk of those with the lowest levels of financial literacy. This is reflected by their general inability to choose the right financial products and often, lack of interest in undertaking sound financial planning, a report by The Organization for Economic Cooperation and Development-Financial Education in Schools disclosed.

She says, “Every time we teach adults about money, they end up spending their 20s and sometimes early 30s trying to figure it out, but if we get to the children early to play a long-term game, and we catch them in schools, catch them in primary and secondary schools, look for how to inculcate it into the system. We’re helping adults who will be able to manage their money better.”

“Take them on your visits to banks, investment houses and explain what happens there. Discuss some of your financial decisions with them and be a good example.”

 

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