The information from this article is based on an interview with Ladi Franklin, on the Straight the BATT live show. As a Value Growth Advisor at Good Works Coaching & Consulting, she provides value growth coaching to SME Founders & Business Executives.
Managing your expenses is a daily task that adults must undertake, but it’s not widely taught in school. Teaching your kids about money at an early age will help them to save, avoid some costly mistakes and spend their money responsibly. On the Straight off the BATT show, our host, Pauline Joseph, discussed ‘How to Raise Financially Literate Children in T&T’ with Ladi Franklin.
Franklin shared some three activities you can practice at home to teach your children about money. They are:
- Modelling Good Money Behaviours Yourself
Make no mistake about it, your kids are watching you! When it comes to managing money, you can inculcate positive behaviours in your children by engaging in those behaviours yourself. You can allow them to sit with you when you are creating your monthly budgets and teach them the value of allocating money towards expenses and savings. If they have questions, ensure that you answer them openly and honestly.
- Create Teachable Moments Within the Home
This can look as simple as designating chores to your child. You can set up a system where once all their chores are completed within a specific timeframe, they will be entitled to an allowance. This not only teaches them that money can be earned, but also, instills self-discipline and responsibility. Furthermore, when giving them their allowance, you can help them budget for their expenses such as snacks, hanging out with friends and savings.
- Give Your Kids Something to Save Towards
Children look forward to receiving gifts such as toys or experiences. You can teach them to save their money to purchase an item that they really want or even negotiate with them. For example, you can tell them, if they save $20.00 per month until Christmas, you will match their savings so they can purchase a larger toy. This way you are teaching them to set smart financial goals and work towards achieving those goals.
Want to learn more about how to raise financially literate children in T&T? Check out our video below:
This article is based on a discussion with Ladi Franklin on the Straight off the BATT Live Series from the Bankers Association of Trinidad and Tobago. The show aims to help you understand financial literacy and education. Join our mailing list, here.