Teaching your kids Financial Freedom

Miss Flower Jackson turned 13 this year, and with that came a lot of maturity.  Her biggest resolution for 2018 was to learn about Financial Freedom.  I mean growing up, I was not near where she is at her age. At 13 I used to force any visitors at home to pay entrance fee (true story). And as much as I made some cash, I would spend it all just as fast as I made it. I had absolutely zero goals. As I grew older I made huge financial mistakes, clothing accounts, credit cards, living beyond my means. I learned, and slowly recovered, but that really took a while. If there’s one value I will instill in my kids, it’s the importance of handling and saving money. The responsibilities that come with, and the freedom depending on your choice.

The SLIME FACTORY

Little Missy approached me with an impressive business plan. She wanted to start a home made Slime business, this has always been her passion. We played around with names and found the perfect one; THE SLIME FACTORY. We then dissected the costs. First I made her do research at her school to find out if she has  a sustainable market regarding her product.  We had to search for bulk material because it makes better financial sense. From there we looked at packaging, flavours, product pricing, and marketing. I bought her start up material as a supportive mom. I made it clear that my commitment is only with start up. She had to learn to use part of her profits to re stock. Most important lesson was to ensure that she saved the remainder of her profit. She has been using a piggy bank and within 3 months we had to fill a second one. Fast forward to 7 months later and we have to decided it’s time to open a bank account.  I wanted her to feel

Top eight tips to help your child start saving:

When giving pocket money to your children, make sure you discuss what the money is going to be used for or what goal it is going towards. This way you teach them the value of saving for both short and long-term goals.

When your kids ask for money, especially if it is over and above their weekly or monthly allowance or pocket money, discuss the reasons why they are asking for it and decide if it is necessary or if it can wait for a birthday or a special occasion.

Don’t only talk to them about money when they ask for it. Take the opportunity to discuss money and personal finances with your children on a continuous basis: for example, chat to them about their allowance and how they can make the most of it e.g. by saving a percentage for specific goals.

Assist them with opening their own bank account – such as Absa’s MegaU account, which is designed with young people in mind – and discuss how savings can help them reach their goals.

One mistake you should actually allow your child to make is spending all their money on one transaction and buying the first thing they see. They’ll quickly learn to ‘ration’ their money or save it for what they really want rather than to buy impulsively. This will be a valuable lesson to reinforce throughout their lives.

Perhaps the most important lesson of all, though, is that children look up to their parents, so it is important for you to “practice what you preach”. If you refrain from impulse buying, your children will mirror your behaviour – especially when they are being pressured by their peers to “keep up with the Joneses”.

MegaU Account

It’s critical to start early: while children can still be taught to make good decisions as they transition to adulthood and become more capable of managing their own finances. By starting to train them at a young age, you can guide and set them on the right path. An easy avenue for doing this is through Absa’s MegaU App that is free, interactive, and developed to make banking simple, rewarding and most of all fun and educational for children. As parent, you can assign certain tasks to your kid, this way they can earn their pocket money and you can use the App to transfer their pocket money into their account, while they can view their balances and transactions. To enjoy the benefits of the Absa MegaU App, you must have one of our transactional accounts and your child must have a MegaU Account.  To open a MegaU account for your child, visit your nearest branch, call 0860 100 372 or visit absa.co.za*.

5 comments
  1. It’s great that you are teaching your kids these important points. And how cool that your daughter has that entrepreneurial spirit!

    1. I think it’s crucial we do that while they are still young. Thank you

  2. SUCH a good post! Thank you for sharing – I’m going to look into that MegaU account. Thinking about saving at such a young age can feel daunting!

    1. Yes it can be very daunting, but the kids will love the benefits that come with it.

  3. Teaching kids this early is a brilliant idea! They should be able to understand how to deal with financial issues such as spending and saving.

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