\u201cBy shielding your child from how finances work you are unintentionally putting them on the back foot,\u201d according to Sibiya.<\/p>\n If they are fairly young you can get your child to pay for something in the queue and also help them identify the difference between a want and a need. You don\u2019t need to go into detail but can simply show them that they will be paying more for the same item if they buy it on credit.<\/p>\n And, conversely, this is a good time to teach them how interest can work in their favour, because if they put the money in a savings account not only will they be able to pay for the item in a few months, but they will also have a bit more money to spend on something else that they like.<\/p>\n \u201cIntroduce them to simple money concepts as soon as you can.\u00a0Older children may even have the ability to grasp more complex concepts such as compound interest or credit,\u201d she said.<\/p>\n 2. Give them (some) control<\/strong><\/p>\n \u201cBy giving your child some measure of control over their own money you will be empowering them to make important financial decisions,\u201d said\u00a0Sibiya.<\/p>\n \u201cSet up a bank account and, under your watchful eye, let them make their own transactions such as airtime purchases or swipes.\u201d<\/p>\n As a result, Sibiya notes that this is one of the quickest ways for children to\u00a0learn about fees, and how some transactions, such as electronic transactions, are better for their bank balance than say, withdrawing cash.<\/p>\n 3. Allow them to make their own purchases\u00a0<\/strong><\/p>\n This falls into the same category as not giving your child control; it is easy to simply buy something for your child outright, or tell them you can\u2019t afford it and move on if you are in the store, noted Sibiya.<\/p>\n But stopping and making your child think carefully about their purchase will put them in good stead for the future.<\/p>\n \u201cIf your child points to something they really want, make them weigh up the options of purchasing it by asking if they can afford it.”<\/p>\n In that way, they\u00a0will have to consider how much money they have put away and whether the cost of the item is worth it.<\/p>\n \u201cYou can help them come to a decision or gently steer them if they look like they will blow all their money on a plastic action figure. But the point is that if they have blown all their cash on something the previous week, they won\u2019t have money for something they really want and that is how real life works.\u201d<\/p>\n 4.\u00a0Don’t give too much pocket money (and teach them to save)<\/strong><\/p>\n Giving children too much pocket money can be detrimental to future good financial behaviour.<\/p>\n “This is not how the world works,” noted Sibaya.<\/p>\n \u201cIn some of the schools I have spoken at, children are given R50 every single day,\u201d says Sibiya. \u201cThey aren\u2019t in the habit of saving it so they feel that they must finish the money every day as they will be getting the next cash injection tomorrow.\u201d<\/p>\n \u201cDiscuss with your partner about how much is a reasonable amount for pocket money. Most importantly, encourage your child to save a portion of it.”<\/p>\n 5. Let them learn\u00a0your good habits (and try to fix your bad ones)<\/strong><\/p>\n![](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/03\/Shield.jpg\")
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