Instilling restraint and responsibility early

As a parent, there is no greater joy than watching your child grow and thrive. But as they grow older, they are also exposed to the complexities of the world, including the temptation of spending money. 
For many, the memory of receiving their first pocket money remains vivid. Recall the thrill of having your own money to spend freely, without a care in the world, is truly unforgettable.
As we grew older, we came to realise that money does not grow on trees. The freedom to spend without limits can quickly transform into the weight of financial stress.
For Jane Tusubira, a mother of two, teaching her children the value of money was a lesson she learned the hard way. 

“Growing up, my parents were always generous. But I never really understood the value of money until I had to start earning my own,” Tusubira recalls. 

Today, Tusubira wants to ensure her children don't make the same mistakes she did. She is teaching them the importance of restraint and responsibility when it comes to money, from saving a portion of their allowance to making smart choices about how they spend their money.

Tusubira's approach is just one model of how parents are taking a proactive approach to teach their children about personal finance. 

By instilling good habits and healthy relationships with money, parents are setting their children up for a lifetime of financial stability and success. 

The power of restraint 

Ideally, restraint is referred to as the ability to control one's impulses, emotions, or behaviours in various social contexts. It plays a significant role in how individuals interact within their cultures, influencing social norms and expectations surrounding appropriate conduct.

Personal finance expert Newton Buteraba, and chief executive officer of House of Wealth –a firm that helps people make, grow, and keep money shares insights on how parents like Tusubira should teach their children the value of money, and how it is making a lasting impact on their daily lives.

Buteraba says, in today's fast-paced world, teaching children the value of restraint is crucial for their financial future. 

“We often focus on imparting knowledge about money management, but neglect the importance of developing good habits,” he stresses. 

According to Buteraba, having 20 per cent knowledge about money and 80 per cent good habits is the key to achieving financial stability.
good habits that children must learn

So, how can parents teach their children this valuable skill? One effective way is to start with something as simple as food. 

Buteraba stresses that by teaching children to restrain themselves from overindulging in their favourite snacks, parents can help them develop self-control and responsible behaviour. 

“This skill can then be applied to other areas of life, such as managing resources, saving, and making smart financial decisions,” he adds.

For instance, a simple exercise like setting a condition that if a child can resist eating an entire pack of biscuits  and save some for the next day, they can be rewarded with another pack. 

According to Buteraba, this approach helps children learn the value of delayed gratification and strengthens their ability to practise self-control.
“As the saying goes: "Frugality is the mother of all virtues." By instilling this value in children, parents can help them develop good habits and a strong foundation for making responsible choices in the future. As Proverbs 22:6 states, "Train up a child in the way he should go, and when he is old, he will not depart from it," Buteraba adds.

By teaching children restraint and self-control, parents can set them up for long-term success in managing their finances and making wise decisions. 

He says parents must prioritise imparting this valuable skill to their children so they can grow up to be responsible and financially stable individuals.

Habits play a significant role in achieving financial stability. By developing good habits, children can learn to manage their resources effectively and make smart financial decisions. This includes saving, budgeting, and taking calculated risks.

Experts say teaching children restraint and self-control is crucial for their financial future. 
By starting with simple exercises—such as teaching children to resist overindulging in their favorite snacks—parents can help instill good habits and build a strong foundation for making responsible choices.

Society must prioritise teaching this important skill to their children, so they can grow into responsible and financially stable adults.
  

Financial problems
The sentiment that many adult financial challenges stem from a lack of financial education during childhood is echoed by several experts. Robert Kiyosaki, in his book Rich Dad Poor Dad, states, "Because students leave school without financial skills, millions of educated people pursue their profession successfully, but later find themselves struggling financially."

Similarly, a study by T. Rowe Price found that young adults who received financial education in school are more likely to have good saving habits compared to those who did not. These insights highlight the long-term benefits of early financial education in shaping responsible money management habits.