Train children to manage money

School has done its part. It is now your turn as parents or guardians. We take our children to school for academic excellence and a few co-curricular activities. But a wholesome person is groomed from the first school - home. Home is a place to learn, explore love and to be loved. True character is built at home. The values that uphold one’s home will be reflected in someone’s life. Over centuries, we go to school to be educated but if we can’t learn to manage the medium of exchange ‘money’, then we are not yet educated.

Parents and guardians should learn the principles of money to impart knowledge and skills to the young generation. A home is a school where both parents and children, together can achieve a lot especially with money-related lessons. Parents sacrifice their needs today to have a prosperous and financially independent child in the future. This is why they should train children to work and manage money early enough. Here are a few tips:

Review your attitude about money
Are you a big spender or you live within your budget? Remember that children learn how to handle money by watching their parents.

Income generating opportunities at home
Occasionally, offer your children an opportunity to make money by doing extra chores besides the daily chores and help them decide what to do with the extra money they earn. Keep in mind children are learning to work, while earning money for their planned spending.

Teach your children to save
Working as a family is fun and fulfilling after identifying sources of income for your children. Start saving money either in a piggy bank or bank account for a specified goal. It brings so much joy for your children to know that they have some money saved for a purpose. Your role is to regularly monitor how much has been saved, and talk to your children about goals for spending their money.

Teach children to handle credit
Allow your children to borrow small amounts of money to make a major purchase when they are old enough to understand credit. Monitor their payments until they have fully paid the loan. This will create a healthy attitude toward credit as they mature.

Ms Annet Katusiime is a financial literacy trainer and consultant at Be Money Wiser co. Ltd