Windhoek-Most good parents work hard to ensure that their children are equipped with the necessary skills to get them through life and succeed. However, the one common mistake that most parents make is delaying teaching their children the importance of banking from a young age.
Children need to learn about banking during their formative years so they can easily implement the lessons learnt when they grow older.
“A lot of people find it hard to budget, save and invest as adults because they never learned how to when they were younger. At Standard Bank we encourage our clients to instil a culture of generational banking which begins with teaching their children about banking at a young age,” Standard Bank’s PR and communications manager Surihe Gaomas-Guchu advised this week.
Gaomas-Guchu stressed that it is never too early to start talking to one’s children about money because the sooner you start the more ingrained banking gets in their minds and they will be able to navigate their way through money with ease in the future.
“Teaching your children about money and banking becomes generational because they will see the role it played in their lives and they will teach their children, who will in turn teach their children, this snowball effect becomes generational,” she explained.
Piggy banks or savings jars are the first step in teaching your children about the value of money and saving, Gaomas-Guchu advised. Give them a target they need to reach every month and guide them on how to stick to it. This teaches them discipline and commitment and they also realise that the more they save the more money they have.
“If your children want the latest gadgets or toys, have them save up for it as opposed to just buying it for them. It not only teaches about saving but also on investing in the things they want,” she said.
Gaomas-Guchu also said it is important for a parent to lead by example, so show them that you too practice what you preach. If need be, start your own savings jar for a small item that you wish to buy. When your children see how you are filling up your jar and eventually buy the item they will be motivated in their savings endeavours.
“When your child becomes a teenager open a bank account for them which they can use to save their money and have access to use it. It also teaches them to be responsible and this is the time they learn to budget base on what they have in their accounts,” she said.
She further explained that this will aid in creating a culture of banking, saving and budgeting in the children and will be carried on for generations to come.
Gaomas-Guchu concluded that it is important in all that parents do to always have honest conversations with their children about money. “Money doesn’t have to be a scary subject or a taboo. Use financial discussions as teachable moments and your children will be better for it in the long run.”