One cannot but think of a bible passage that is so apt when it comes to financial intelligence, prudence and management as this one ‘’ train up a child in the way he should go, so that when he grows up he will not depart from it’’ (proverbs 22:6). One of the major headaches encountered by most parents and fathers in particular is the challenge of setting your child on the path of financial independence and intelligence. When children are born, they are born devoid of financial knowledge and intelligence, it is the duty of the parent, particularly the father to guide these children along this path and make them to learn, not forcefully though this great life saving action.
In the words of the famous financial expert and Author, Robert Kiyosaki ‘’ financial freedom is a mental, emotional and educational process’’ , this means that both parents and particularly the father must be sound mentally, emotionally and educationally in order to pass this knowledge on to their kids. For as the saying goes, ‘’a man cannot give what he does not have’’. The task in itself is an arduous one that involves a whole lot of ‘’long suffering’’ which as they say is the older brother to ‘’patience’’.
We have taken our time to draw up some useful tips on how to ensure that the aim of financial growth and intelligence for your growing child is achieved. These tips are outlined below;
- MAKE THEM EARN MONEY: When kids are made to earn money, they learn the importance of working to get whatever fund that comes to them. This can be achieved by assigning chores around the house so they can associate task completion with wages earned.
- OPEN A BANK ACCOUNT FOR THEM : opening an account isn’t the main motive here but getting them to try to save using a bank by teaching the importance of saving through opening an interest-bearing savings bank account where they can deposit money they’ve earned.
- GET THEM TO LEARN THE IMPORTANCE OF PATIENCE: When a child is waiting in line to say play some games or have fun, discuss with them, how important it is to wait.
- TEACH THEM TO ENJOY GAMES: Get them to Play financially focused games, such as Monopoly, Game of Life, and Sims that involve making important and strategic decisions. Playing games can be a great way to explain the concept of risk and reward, which can lead to conversations about the stock market.
- CREATE THREE JARS : Create three jars each labelled “Saving,” “Spending” or “Sharing.” Every time your child receives money, whether for doing chores or from a birthday, divides the money equally among the jars. Have him or her use the spending jar for small purchases, like candy or stickers. Money in the sharing jar can go to someone you know who needs it or be used to donate to a friend’s cause. The saving jar should be for more expensive items.
- GET THEM TO SET SOME GOALS: Have your child set a goal, such as to buy a toy. Make sure it’s not so pricey that they won’t be able to afford it for months. “Then it just gets frustrating, and it gets hard for them to wrap their head around.
- SET A GOOD EXAMPLE : Share your personal strengths , such as frugal shopping, meeting your family goals, or meeting your family’s saving goals, show them the reward of saving or buying a family car for a vacation.