Everyday activities to teach kids financial literacy

When talking to children about money and finances, it needs to be easily understandable, practical and relatable. It also has to be fun. At the heart of it is teaching them how to balance their needs and wants with what they have and creating a positive relationship with money.

Here’s how to teach kids about finances and incorporate it into everyday activities.

• Get comfortable talking about money, often
  Having open and honest conversations about money and how it works will encourage them to ask questions and create a discerning opinion. It takes away the shame about money and gives you the opportunity to be able to guide them. In turn, they’ll have the opportunity to learn from mistakes (yours and theirs) in a safe environment where the stakes aren’t that high.
  
  Whether you’re at the dinner table or at the shops, chat about cost and worth and what they think you should pay for something. Include them in some (small) financial decisions, e.g. should we buy this treat or save the money to buy a different, better, more expensive treat next week? Remember to explain things in an age-appropriate way.
• Open a bank account for them
  You can start with a piggy bank and then graduate them to a bank account. The teachable value of a bank account is (1) they can have ownership, and (2) it visually represents a complex and abstract concept.
  
  When they want something, let them pay with the money from their account. They can see how the amount increases and decreases. It teaches them consequence and how they can have control over their finances but also the time-value of money and how long it takes or how hard you have to work to make it grow.
  
  You can open a (sum)1 Banking Account for free and use the Standard Bank App to help them manage their money: how much money they have, how transfers work and understanding ‘where the money went’. The account also comes with range of tools to empower your children, such as Stash for Kids, which allows you to start building an investment portfolio for your child, with a tax-free investment from R5 in their own name.
   

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• Make it a game
  Kids learn through play, and when they play, they become immersed in the situation and environment and internalise those skills. You can let them help you find the best deals and give them a budget to buy things for the family; e.g. it’s Granny’s birthday; here’s R100, go and get some eats. This helps them participate and feel that they have a say but also teaches responsibility.
• Skip the allowance, give them a payday
  Instead of giving them an allowance, let’s say R100 that they get and then need to complete chores, have them do tasks and chores that ‘earn’ them money that works up to that amount. This way, they understand the value of money, what being rewarded means in financial terms, what you can achieve if you work for it and put in the effort, as well as how to be efficient.