When too much comes too easily and quickly, children will expect the same of the wider world when they grow up.” “Teaching children about money is often about teaching delayed gratification. It’s hard to watch, but it’s important.”Ĭollier says giving children pocket money is a tried and tested technique that works well - provided it is done with intention. “It’s good to stand back and let your children struggle a bit. “If kids don’t understand the consequences of spending all their money on the first thing they see, and thus being denied something else they may want, they will have trouble making wise decisions later on in life,” he cautions. “We are constantly bombarded with advertisements,” Collier says. Gareth Collier, a certified financial planner and director of Crue Invest, says childhood lessons are critical for forming responsible adult financial behaviour. However, we remain a credit-hungry, over-indebted society because managing money has largely been about trial and error.”
“There has been some improvement over the past couple of decades. “Financial education was not traditionally in the school curriculum, and money was frequently a taboo subject at home,” he says. Īlthough children may think about much less weighty matters, learning about money management has significant advantages, says John Manyike, head of financial education at Old Mutual.īecause many parents have not been educated themselves about money, Manyike asserts, few children are fortunate enough to have been taught these skills. Tip: Teach your children about delayed gratification by means of an investment product such as unit trusts. We consider the benefits of giving pocket money to children, and some methods for teaching them to make wise money choices later in life. However, pocket money is an essential first step in teaching children to manage money, and correctly value their finances. Children may view pocket money as a gift rather than something earned, and many parents attach no conditions to receiving an allowance.
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