How to impart financial wisdom to the next generation

18 June 2021 | Columns

Financial confidence is developed at a young age – here’s how you can help.

One of the best gifts parents or guardians can give their children is an understanding of money. How to earn it, value it, save it and spend it (wisely).

“Without a working knowledge of money, it is extraordinarily difficult to do well in life,” says Sam X Renick, co-creator of Sammy Rabbit, in an article for Forbes. “Money is central to transacting life, day-in and day-out. Where we live, what we eat, the clothes we wear, the car we drive, health care, education, child-rearing, gift giving, vacations, entertainment, heat, air-conditioning, insurance—you name it, money is involved.”

Here are three ways to help shape children’s financial literacy:

1. Teach them the importance of earning money

Whether it’s setting up an outdoor bake sale in your neighbourhood park, or rewarding your kids financially for completing certain chores (feeding the pets, hanging up the washing and the like), teaching them how to earn money – and why it’s important to be able to earn an income – is powerful.

2. Teach them how to budget and save

Learning how to manage funds once you have earned them is a fundamental part of financial literacy. Sit down with your kids and ask them about the things they’ll need (want) money for that month – it could be tuck shop money once a week, buying a new book and going on a fun outing; then explain to them how they need to use the money they have earned to budget for the things they want in the month. If they don’t have enough for everything, they must decide what they’ll rather have the following month. If something they want is really pricey – like a bicycle or a Lego set – explain to them that they’ll need to save, and how to do so. This is also a very necessary lesson in delayed gratification – that saving for something worthwhile is worth it.

3. Teach them about credit and debt

Children pick up on everything – and they have no doubt seen you swiping your ‘magic’ card while out at the shops. It’s important for you to tell them how a bank card works, and even more significantly, what is credit, what you use it for, and how – if not used correctly – it can leave you in a really bad spot (debt).

Similar News

 

Bridging the healthcare divide saves lives

5 days ago - 23 July 2021 | Columns

Celia Sofia StephanusIn December 2019, Covid-19 became something for the world to worry about. It was no longer something that was just happening in Asia....

The importance of getting good advice

2 weeks ago - 09 July 2021 | Columns

Good financial advice from a qualified professional can significantly improve your peace of mind and chances of success as you battle with economic challenges this...

Career success positioning is vital

3 weeks ago - 02 July 2021 | Columns

Agnes YeboahThe Covid-19 pandemic has accelerated the fourth industrial revolution. These days, because career paths are rapidly evolving, securing and maintaining a job requires more...

Mental well-being suits us all

1 month - 25 June 2021 | Columns

DR JOHN STEYTLERMental health is a subject which we are only starting to scratch the surface of in Namibia and it is not talked about...

How to impart financial wisdom to the next generation

1 month - 18 June 2021 | Columns

Financial confidence is developed at a young age – here’s how you can help.One of the best gifts parents or guardians can give their children...

Career partnerships – mentor, coach, sponsor

1 month - 11 June 2021 | Columns

Chaze NalisaA few weeks ago, I shared an article titled ‘Network is a Currency’. In today’s piece, I would like to draw attention to network...

How to combat negativity in the workplace

2 months ago - 21 May 2021 | Columns

Analene MeyerWe spend the majority of our waking hours at work. It’s worth taking the time to help make it a place that you –...

Keeping it real

3 months ago - 01 April 2021 | Columns

It’s Easter weekend and it's beautiful to see the number of event posters for different shows taking place this weekend. Last year, around this time,...

Matter of fact:

3 months ago - 31 March 2021 | Columns

In the story ‘Namdeb set to evict tenants’ published 29 March, Namibian Sun reported that Namdeb was evicting its employees from houses it owns. The...

Building self-confidence through self-awareness

4 months ago - 26 March 2021 | Columns

Self-management is the second pillar of emotional intelligence, as described by Daniel Goleman. Following his theory, to be able to manage ourselves successfully, we need...

Latest News

Fighting the fire of discontent

17 hours ago | Economics

Jo-Maré Duddy – Although Namibia shares a similar volatile cocktail of high inequality, poverty, unemployment, corruption and waning trust in political powers than South Africa,...

Livestock marketing gaining momentum

17 hours ago | Economics

PHILLEPUS UUSIKUDue to the unavailability of animals in the market for the month of April 2021, there was a massive decline in the number of...

Covid: Come to work even...

17 hours ago | Health

TUYEIMO HAIDULA OSHAKATIThe health ministry has ordered its staff members in the north to...

African central banks to hold...

17 hours ago | Economics

VUYANI NDABAMajor sub-Saharan African central banks are expected to keep interest rates on hold this week as the region's recovery lags the rest of the...

EDITORIAL: ACC reappointments discouraging

17 hours ago | Opinion

First things first: No sitting president should be appointing the anti-corruption boss in any constitutional democracy. It compromises ethics, impartiality and – perhaps most importantly...

Taxing ­rendering ­services outside ­Namibia

17 hours ago | Business

Stefan SwartzHave you and your employer been in a position where the services you perform, as part of your trade, had to be performed to...

Africa demands local production of...

17 hours ago | Economics

Global pharmaceutical firms should license production of Covid-19 vaccines in Africa rather than just do piecemeal contract deals, an African Union special envoy has said.By...

Crash near Henties kills govt...

17 hours ago | Accidents

Staff Reporter Henties Bay A 49-year-old man died in an accident on the C-34 road yesterday.According to the Namibian police’s Erongo commander...

AstraZeneca keeps eluding Namibia

17 hours ago | Health

JEMIMA BEUKES WINDHOEKGovernment has expressed serious concern with the perpetual delays of AstraZeneca Covid-19 vaccine delivery, which has now put the...

Load More