We Should Not Let Our Children Drown In Debt, Time To Teach Them Money Manners

By Steve Biko Wafula / Published March 19, 2023 | 12:58 pm

KEY POINTS

Children who are financially literate also tend to be more responsible and accountable, which can benefit them in other areas of their lives. By teaching children about money management, we can help them develop healthy financial habits that will serve them well throughout their lives.

KEY TAKEAWAYS

Children who are taught about money at a young age learn to value it, understand its purpose, and appreciate the importance of managing it wisely. This knowledge can help them avoid making financial mistakes as they grow older and become more independent.

It is important to teach our children money manners, especially in regard to debt, because excessive debt can have serious consequences on one’s financial and personal well-being.

Without proper education on how to manage money and debt responsibly, children may fall into the trap of overspending and borrowing beyond their means, leading to a cycle of debt and financial stress. By teaching children about budgeting, saving, and the responsible use of credit, parents can help their children avoid the pitfalls of debt and build a healthy financial future.

Learning good money manners can also teach children the value of delayed gratification and responsible decision-making, which can have a positive impact on their overall character development and personal growth.

It is important to train our children on the importance of money because financial literacy is a critical life skill that can have a significant impact on their future success and well-being.

Financial literacy is a crucial skill that can help children become better money managers and avoid the pitfalls of debt. As parents, it is our responsibility to teach our children how to handle money wisely. Here are some strategies that can help:

Start early: Financial literacy education should start early. Even preschoolers can learn about the concept of money and its value. Use play money or a piggy bank to introduce the concept of saving.
Be open about money: Talk about money openly with your children. Share your own experiences with money, both good and bad, and discuss the importance of saving and budgeting.
Set a good example: Children learn by example, so it is important to set a good one. If you have bad money habits, your children are likely to pick them up. Show them how to budget, save, and invest.
Teach budgeting: Teach children how to budget by setting up a spending plan. Help them understand the difference between needs and wants and encourage them to save for their wants.
Encourage saving: Encourage children to save by setting up a savings account for them. Teach them about interest and the benefits of long-term saving.
Involve them in family finances: Involve children in family finances by letting them help with grocery shopping and bill paying. Show them how to compare shops and how to pay bills online.
Teach the value of hard work: Teach children the value of hard work by paying them for chores. This can help them understand the concept of earning and saving money.
Discuss credit and debt: Teach children about credit and debt, including how to use credit responsibly and how to avoid getting into debt.
Teach the importance of giving: Teach children the importance of giving by encouraging them to donate to charity or volunteer in their community. This can help them develop a sense of responsibility and generosity.
Use real-life examples: Use real-life examples to help children understand financial concepts. For example, show them how interest works by using their savings account as an example.
Teach investment basics: Teach children about investment basics such as stocks, bonds, and mutual funds. This can help them understand the benefits of investing and the importance of diversification.
Encourage entrepreneurship: Encourage children to start their own businesses or side hustles. This can help them learn about entrepreneurship and financial independence.
Discuss financial goals: Discuss financial goals with children and encourage them to set their own goals. This can help them develop a sense of purpose and motivation.
Be patient: Financial literacy takes time to develop, so be patient. Continue to reinforce good financial habits and provide guidance and support.
Seek professional help if needed: If you are struggling with debt or other financial issues, seek professional help. This can help you get back on track and provide.

Every parent in Kenya should teach their children the importance of money because financial education is crucial for their future success and economic stability. Kenya is a developing country where many people struggle with poverty and lack of access to basic necessities such as education and healthcare. By teaching children about money management, parents can empower them to make better financial decisions that can improve their quality of life and help break the cycle of poverty.

For example, if parents teach their children about budgeting and saving, they can learn to prioritize their expenses and avoid overspending on non-essential items. This can help them save money for important expenses such as school fees or medical bills, which can be a significant financial burden for many families in Kenya. Additionally, if children learn about the importance of investing and entrepreneurship, they can develop skills and knowledge that can help them create wealth and contribute to the country’s economic growth.

In conclusion, teaching children about money is an investment in their future that can have a positive impact on their financial well-being and overall quality of life. With financial education, children can develop skills and habits that can help them succeed in their personal and professional lives and contribute to the economic development of Kenya.

Related Content: How To Save Money In Kenya With A Limited Income

About Steve Biko Wafula

Steve Biko is the CEO OF Soko Directory and the founder of Hidalgo Group of Companies. Steve is currently developing his career in law, finance, entrepreneurship and digital consultancy; and has been implementing consultancy assignments for client organizations comprising of trainings besides capacity building in entrepreneurial matters.He can be reached on: +254 20 510 1124 or Email: info@sokodirectory.com

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