HAVE YOU INTRODUCED MONEY MATTERS TO YOUR CHILDREN?
Opunimi Akinkugbe
Nigerian Ambassador to Greece (2021-2023) Founder Bestman Games, Money Matters with Nimi Author “A-Z of Personal Finance”
HAVE YOU INTRODUCED MONEY MATTERS TO YOUR CHILDREN?
Research has shown that #money personalities are formed from as early as 6 years old so that the early lessons that children have will stick. Positive lessons will give them the best chance at achieving #financialsecurity in future. Is your child a #saver? Or a #spender?
The relationship between #needs and #wants is an important concept for #children to understand. Needs are things that we must have in order to #survive.
Wants, on the other hand, are things that we would like to have, but that are not necessary for #survival.
Needs include:
#Clothing, Medical care, Nutritious food, #Shelter, #Transportation, Basic utilities (e.g., heat, water)
Examples of wants include:
Cell phones, #Electronics (e.g., #iPad, etc), Fancy trainers, #Magazines, #Television, Video games
Little children get excited about their “piggybank”; this traditional first savings method helps to build initial #interest. Today some #piggybanks have various compartments for #saving, #spending, #investing and #giving; the children can then decide where their money goes.
Naturally, as children get older, and begin to #save more deliberately, it is important that you visit a #bank with them to make a #deposit into an account opened in their name to reinforce what you are #teaching at #home. Many banks offer incentives and attractive savings account options tailored for children. Explain the concept of earning interest on their savings.
Saving towards #goals encourages a sense of motivation. Discuss some goals with them and guide them as they work through them with a reward when they achieve a certain milestone. Encourage them to keep a record of how they are saving and spending their money; this will set the stage for budgeting. An ATM card may be introduced when they are eligible.