For parents, teaching their children about managing money from an early age can be a good way of instilling positive financial behaviour. Not many parents are clear about how soon they should introduce the fundamentals of money management to their children, but experts have advised that there are ways to make this a fun experience.
How you can teach your child about banking from an early age:
Turn your day-to-day activities into learning experiences
When you are going to do your grocery shopping, you can include a lesson or two about banking by showing your child how to buy using cash or by paying by card.
Work money concepts into your child’s imaginary games
When your child is playing a game where they are driving around town, you can get creative about teaching them about banking from an early age by including trips to the mall or to the petrol station, where you have to pay for fuel.
By exchanging play money for goods; your child begins to understand the basics of commerce
Play the imaginary restaurant game
This can be a fun way of introducing basic money concepts and table manners too. As you set up your imaginary table at the restaurant you can ask your child how much money they have to spend on their meal.
Make a trip to the bank an event
When you visit the bank, make sure to include your child in the process by showing them how to deposit or make withdrawals.
Help your child to open a savings account and encourage them to make regular deposits
By introducing banking from an early age you can ensure that your child becomes familiar with banking. Their savings account should show them how their money can grow, with patience and dedication.
Start teaching comparison shopping at an early age.
Compare bulk purchases, look at size and prices when shopping.
Help your child set a budget by discussing wants versus needs
This is an important step towards teaching your child about banking from an early age and forms the foundation of basic money management.