We work hard to ensure our kids gets the best in land and what they need to succeed in life. We need to give them the tools they need to thrive financially .Engaging them in our daily money saving and spending activities acts as a great learning lessons.
For example sending
them to buy bread and a packet of milk, gives them a sense of responsibility
and a notion that you have to pay money to buy goods and services. Getting the
right change and knowing the actual cost of the product improves their mathematics and
accounting skills.
Good financial habits are cultivated by using kids friendly methods
for example piggy banks to save, deposit spare change, cash gifts from family
members and friends.
Familiarize your kids with the bank procedures. Let them deposit
their savings physically.
Help them understand if they save money for some time, they
will be able to buy their desired items. This encourages them to save and helps
them learn about goal setting. Since we do not want them to grow up spoilt and
we know that they will be happier if they work for the stuffs they need.
Instead, they are
more fortunate through this teaching on life lessons and will pass it on to the
next generations.
The following are tips
to put in place in enhancing kids’ financial literacy.
Identification of
different notes and currencies
This is the first step in financial literacy. Teach on
different notes and denominations, coins and different currencies. Let them
know how that Euro, dollar and shilling look like and their value.
Expose to them the
concept of investing
Encourage them to seek
knowledge and mentorship from the successful people in the field of interest.
If you do not find a means of multiplying money, you will wake up one day to
realize that the money you thought you had, has finished. Investment is key.
Importance of money
Money is a medium of exchange
and without it, we cannot trade. It gives you security, options and freedom. We
earn, save, invest and spend because of its availability.
Teach them the
difference between assets and liabilities.
Assets are items that one owns ,they help in generating revenue. They can either be fixed or current.
On the other hand liabilities are obligations that needs to be paid in the future. They can either current or non current liabilities.
Teach them on
spending habits
Encourage your kids to plan how to spend their savings.
Spending on what is necessary and of importance. Spend more on your needs than
in wants. Prioritizing things matters
Money management
This is the best gift that the kids can get from us parents.
Plan your monthly budget together, stick to that plan and review it monthly.
Put everyone on board and this will ease the goal achieving process.
Different ways of
earning money
There is always s money out there you only need to get a way
of bringing it closer to you. Most people come from a point of scarcity making
this not to settle well in their mind. Even if you are an employee, there is
always other streams of income.
Invest in real estates and stock markets. The internet has
opened up many opportunities for example Tiktok and Instagram if you build up a
following, look fly and on trend, the you can get brand deals and partnerships.
Developing productive
habits from the early age
Teach them to do a
private budget, manage credit wisely.
Deal with the sense
of entitlement
No matter how wealthy your parents are, let your kids learn to
earn their own success. Be financial independent and Stop clinging to that
inheritance.
Delayed gratification
It takes time to
build an empire and patience pays eventually. All hard work will be worth it.
To solve other people
problem always pays back
Every multi billionaire in the world provided the so much
needed solution to a certain problem. Always strive to be a solution giver and
not a complainer.
Being financially knowledgeable places you high above giving
you opportunities to flex your muscles and make it in life.
Do not be poor and
look rich, be rich and look poor because you invest in secret.-Robert Kiyosaki
saying looking good but going nowhere has proven to be true to some visionless
individuals.
Always remember clean
earned wealth makes one proud of his hard work and efforts giving satisfaction
and fulfilment.
Let us bring up a financial literate generation making the
world a better place to be.
