From the moment they’re born, children start absorbing skills and knowledge through their interactions with the world. While they pick up social and hygiene habits from their immediate surroundings, one crucial skill that will benefit them throughout their lives is financial literacy. Teaching kids how to manage money effectively is not just about saving or spending; it’s about preparing them for a secure future.
Even though schools may offer some financial education, it’s your guidance that will truly shape their understanding of money. Given the economic challenges in Africa, including poverty and unemployment, early financial education can pave the way for a more stable future for our children.
Imane Charioui, Director of Francophone Africa at WorldRemit, shares practical tips for Cameroonian parents to teach their children about money:
1.Start the Conversation Early
In many Cameroonian households, discussing finances may be avoided in front of children. However, introducing them to basic financial concepts early on can be incredibly beneficial. Talk about everyday expenses, such as food, transportation, and holidays. Explain the difference between necessities and luxuries. Take your kids shopping, show them price tags, and use cash instead of a card to make the concept of spending tangible.
2. Introduce Them to Money
As soon as your child can count, introduce them to different forms of money, such as CFA Francs and coins. Use engaging games to teach them about the value of money, how to count it, and how to calculate change. Classic games like Monopoly can be educational and fun, or create your own money-themed games to play at home.
3. Teach Budgeting
Help your children understand the basics of budgeting by creating a colorful chart with columns for ‘money in’ and ‘money out.’ For younger children, use separate jars or piggy banks for spending, saving, and sharing. This visual approach will help them grasp the concept of managing money and the importance of saving for the future.
4. Encourage Saving
Teach your children that saving is just as important as spending. Open a savings account for them—preferably a digital one, as they’ll likely do most of their banking online in the future. Review their account statements together and explain how deposits and interest contribute to their savings. Encourage them to save for larger items they desire, fostering patience and goal-setting.
5. Promote Earning
Instead of buying everything your child wants, encourage them to earn money themselves. Young kids can do household chores to contribute to their piggy banks, while older children might take on babysitting or gardening jobs. Teens can explore part-time work to earn extra cash. Earning their own money helps children appreciate its value and the effort involved in acquiring it.
6. Teach Smart Spending
When your child has saved enough for something they want, let them make the purchase decision. Guide them on how to stick to a budget and avoid overspending. Allowing them to manage their own money teaches valuable lessons about financial responsibility and personal choice.
By incorporating these strategies into your parenting approach, you’ll help your children develop essential money management skills that will serve them well into adulthood.
