FINANCIAL FREEDOM: PRACTICAL LESSONS FOR CHILDREN

In order to minimize or avoid the financial entanglements which results in complications in the long run, the behaviour of financial discipline has to be inculcated into children at a tender age. 

Showing children how to be financially savvy involves teaching them the basics such as how to budget, earn, spend and save that will establish good money habits for life. Money management is a vital life skill and it is never too early to teach our children about this important life skill. 

At a young age, children need to be taken for grocery shopping and given real money to manage for themselves as that enable them to learn responsibility and decision making. 

Also, children need to understand the need for saving therefore, from their money they should be able to save, spend and give while being able to explain the rationale behind their decisions. A piggy bank is also a great idea, but teach it visually. Take a clear container and make a big deal about how the container is filling up – the growing aspect of money, having more than the day before.   

Furthermore, they should know the benefits of paying bills on time as delaying can attract high interest as well as tarnishing the credit record. Monopoly is a very good game to encourage many different 21st century life skills including strategy that offers ways to manage your money while teaching you about guiding a secure financial future. 

Another important lesson that children should be taught at a young age is entrepreneurship, as having a hands-on experience of running an enterprise enables them to grasp lifelong lessons which can come in handy in the long run whether they fail or they succeed. 

Financial freedom is a result of a disciplined behaviour premised on the SAVE , SPEND and GIVE notion.