New research has found that parents are more likely to talk to their children about having good manners and getting good grades than they are about money. Many parents feel that talking about the benefits of good eating habits, getting good grades and the dangers of drugs, alcohol and smoking are all more important than talking to their children about money. And for those who even think it is important, they wait until their children are 10 years or older before having the first conversations about money.

As your child’s first and most important teacher, you are the one to provide the foundational building blocks of education especially financial education because it’s missing from the school curriculum.

What is the picture you see of your child’s financial future? Do you want your child to be money smart like Warren Buffet or Robert Kiyosaki? Even if it’s just to be comfortable enough to live a good life you need to teach your child the following before they are 10.

1. Money does not grow on trees
When kids see money come out of the ATM, they don’t realize that it is a limited resource. They believe each time you want something you can just go there and get it out. You need to explain to your child that you work to make money. The bank is just a place that helps to keep your money safe. Don’t be pessimistic in teaching this though. Everyone must work to make money.

2. Work with Your Budget
Every child should realise that they need to live within their means. The best way to teach kids to start managing money is to give them some. If they blow their allowance on a toy and don’t have enough left for a gadget they really want, that’s actually a good thing. Let them begin to experience the effect of overspending. It is better they learn it now than later.

3. Good things come to those who wait
Teaching kids delayed gratification will help combat the “buy now, pay later” mentality that could make them live in debts later on. As much as you can, reinforce the idea that waiting pays off. It’s one great skill that the rich have. You can demonstrate this by making a homemade meat pie together; then microwave one bought from the eatery that’s frozen. The homemade pie takes longer, but it tastes way better because it is fresh.

4. Don’t spend money as soon as you get it
Curbing impulse buying goes hand in hand with teaching delayed gratification. Show this by example too. Before you go shopping, create a budget. Outline what you’re going to buy, where you will buy them, and the price range for each item. Compare prices and ensure you pick the cheapest stores for the purchase. Let your child keep the savings made so he sees that bargaining pays. He’ll learn that planning purchases before you buy is a favourable routine.

Join me again next week as I conclude on this topic. Have a good weekend!

– Gbonjubola Sanni