By Emsie Martin

In today’s financial turmoil one often hears people say that their children are struggling  to handle money. Sometimes it’s parents’ own fault because they are too eager to help.

Carla Oberholzer, a debt advisor at DebtSafe, says: “If there was one specific request that I would have made when I was younger, it would have been: ‘Help us raise a money-smart youth in South Africa’. The concept of money is a fundamental skill that any adult, parent, guardian, family member or teacher can help our young people acquire. Not only does this offer the youth and their future financial decision-making a winning situation, but it is also a victory for South Africa’s economy and welfare.”

Oberholzer encourages adults to help grow a generation of money-smart young people and the key is to engage, teach and help them from a young age to acquire the necessary knowledge, practical skills and self-confidence so that they can make informed financial decisions. Adults should start talking to children about money, make the money concept tangible and help the youth to become financially literate.

DebtSafe’s team compiled an age guide that offers adults (younger adults included) some ideas as to what to include in their financial teachings for the youth:

Toddlers (2- and 3-year-olds)

Toddlers can begin to distinguish between the names of coins (cents) and notes (rands). Adults can play a colour game and help the children to become used to money.
(Please note: Supervision is necessary when they play with R1, R2, R5 and 10c, 20c and 50 cent coins.)

Toddlers can begin to understand the basic principles of business by exchanging money or game money for goods. It’s fun and educative to play going shopping at home.

Preschool learners (3- to 5-year-olds)

Adults are encouraged to allow 3- to 5-year-olds to play along in educational money activities:

Imagination-related playing initiatives such as “restaurant-restaurant” of “shop-shop” can include skills such as learning good manners and giving change as a cashier.

Doing jobs for pocket money provides educative opportunities. And do not forget about the “feel” concept that a piggy bank can teach a child.

By including the above-mentioned examples, preschool children can begin to understand the money concept and get a basic understanding of accounts that have to be paid.

School learners (6- to 12-year-olds)

There are various things that parents can do to help sharpen 6- to 12-year-olds’ money consciousness, for instance:

Open a bank account specifically for children: Several South African banks offer these accounts and offer a free service fee (R0,00) as well as specially designed rewards applicable to children.

Comparison concepts during shopping: Children can go on educational shopping excursions to spot bargains by, for instance, comparing the prices of generic products to those of branded products).

Teenagers (12- to 18-year olds)

The value of a budget and the gift of giving …

Teenagers’ pocket money has a habit of disappearing very fast. Parents are encouraged to help their children draw up a budget specifically so that they can distinguish between what they want and what they really need (necessities).

There are various bank and/or phone applications for children if parents want to incorporate it with their activities and lessons. There are also various programmes, such as MoneyTime or StarSaver that can help them to make sure that teenagers acquire several financial skills.

There is nothing better to help explain the concept of money than when it comes to charity (children may chose organisations to which they want to make donations). “Social-responsibility initiatives offer moments of learning and it is a long-term money-behaviour investment for any teenager,” Oberholzer emphasises.

Young adults (18- to 30-year-olds)

Budgeting is a MUST. They can use various applications and products that suit their unique personalities.

They must distinguish between real needs and desires.

Why exert unnecessary pressure? Young, working adults can start with little and start  small when they want to incur credit or debt – it is not necessary to buy a luxurious house and car all in one go.

Financial-emergency planning and medical or health investments are extremely important – professional people or institutions can be of assistance with various products (for instance with a type of emergency fund or retirement plan).

Young individuals should check their debt regularly and have a detailed plan available to make sure that short-term or long-term objectives and savings are included in their budgets.

Money plays an important role in every individual’s life and therefore it also deserves a lot of attention from a young age. Learning how to save, budget and take responsibility for their debt is something that young people must make part of their lives and acquire. Knowledge of money and money skills will enable young people to experience the gift of financial freedom.

Perhaps you want to help people become more independent financially. Solidarity Occupational Guilds is a community that not only makes you strong in your profession, but is a community where you feel at home, work together and learn together. It is a community focused on protecting the profession, creating career opportunities for young people, keeping watch over professions and coming forward with workable solutions to challenges. Do visit https://gildes.solidariteit.co.za/ for more information on your occupational guild.

Source

Carla Oberholzer by DebtSafe  carla@debtsafe.co.za