“Mum, can we buy that toy?”
Remember the days when that simple question would send you into an internal debate? “Should I? It’s just a toy, after all. But wait, what about saving? Ah, they’re only young once…”
We’ve all been there. Money and kids don’t always seem like they should go together. Like oil and water, or football and cricket, they appear to be mutually exclusive. But what if I told you that combining the two could be one of the most significant lessons you impart on your child?
Why Debt Prevention is Crucial for Kids
Let’s start by acknowledging the elephant in the room. South Africa has a troubling debt situation. Household debt is mounting, and a significant number of families are struggling to make ends meet. Even though there are many factors at play, lack of financial education from a young age is part of the problem. In a world of credit cards, online shopping, and ‘Buy Now, Pay Later’ options, knowing how to handle money has never been more crucial.
Practical Lessons are Gold Dust
Yes, yes, schools have started incorporating financial literacy into the curriculum. But let’s be honest, the best lessons are those learnt at home. Start with something simple like pocket money or an allowance. Use it as a way to teach your kids about saving, spending, and making wise choices. You don’t need to turn it into an economics lesson—just basic concepts will do. For example:
- Saving: Encourage them to put away a portion of their pocket money for something they really want. Whether it’s a new bike or the latest video game, teach them the virtue of patience and delayed gratification.
- Budgeting: Make it a fun activity. Sit down and help them create a little budget with their allowance. Show them how much goes into saving, what can be spent, and perhaps a little for charity too.
- Understanding Debt: Use relatable examples. If they want to borrow money for something they can’t afford, lend it to them but introduce the concept of interest. They’ll quickly learn that borrowing money isn’t free and comes with strings attached.
The Shopping Game
One fun activity could be ‘The Shopping Game.’ On your next trip to the supermarket, involve them in the shopping process. Compare prices, look for discounts, and explain the pros and cons of buying in bulk versus individual items. This will not only keep them engaged but also instil practical skills.
Storytelling with a Twist
Who doesn’t love a good story? Storytelling can be a powerful tool to make the idea of debt prevention relatable. Create characters and scenarios around financial dilemmas. Will Timmy the Turtle spend all his shell coins on a lavish feast or save up for winter? These simple stories can leave a lasting impression.
Future-Proofing the Next Generation
It might seem daunting, but incorporating these lessons into your child’s life can set them up for a more secure future. As the African proverb says, “It takes a village to raise a child.” So let’s come together as a community to equip our youngsters with the skills they need to navigate the complicated world of finance.
Remember, it’s never too early—or too late—to start teaching your kids about money. Because unlike Timmy the Turtle, they won’t have the luxury of hibernating through financial difficulties. They’ll need to face them head-on. And as parents, it’s our duty to prepare them for that reality.
