KIDS AND MONEY: FIVE WAYS TO START THE CONVERSATION

WHEN IT comes to teaching young children about the world, parents may feel that some topics—like politics and religion—are too tough to broach.

- BOMIKAZI ZEKA and ABDUL LATIF ALHASSAN

Money is another.

Parents may not feel like they know how to approach the subject, or worry that they don’t set a good financial example for their kids. But money talk shouldn’t be avoided. Talking about it is the first stepping stone towards financial knowledge—and, ultimately, to financial independence.

Holding offthe conversations for too long can leave your children in the lurch later in life. For instance, in South Africa, only 42% of adults are financially literate. In Ghana the figure is 32%, and in Nigeria it’s 26%. This means a large number of adults in these countries do not know or understand financial concepts.

This highlights the importance of starting the money talk conversation early to ensure that individuals possess the knowledge, skills, and confidence to successfully manage their finances.

Perhaps your child receives an allowance, and you feel this is enough to familiarise them with the concept of saving or about the value of money—but studies have found that an allowance is most beneficial when it’s paired with guidance on savings and budgeting.