Gbenga Okejimi
Right from beginning, kids start to actively choose up expertise and data as they have interaction with totally different environments. From the social expertise they study at residence to the hygiene expertise taught at college, all contribute to their improvement, however one lifelong talent that’s important and can see our kids by way of good and dangerous instances is understanding handle money.
Some faculties could do their bit to show monetary literacy, however it’s in the end your steering that’s wanted to assist them discover their wings. Given the baseline of poverty and unemployment in Ghana, offering our kids with early monetary schooling and mentorship will create sustainable livelihoods for them in the years to return.
Gbenga Okejimi, Country Manager, Nigeria, and Ghana of worldwide money switch firm WorldRemit, has a number of suggestions to assist Ghanaian dad and mom train their kids be money savvy.
1. Let’s speak money
In many Ghanaian houses, dad and mom could not wish to chat about household funds in entrance of their kids, however in order to nurture a baby who’ll be in good monetary form as an grownup, it’s actually value beginning the dialog early – with out, after all, bringing up any actual monetary worries.
So, think about chatting with the kids from an early age about routine purchases like meals, paying for schooling, transport, and holidays. Discuss the distinction between the stuff you want resembling meals, water, heating, and the stuff you need – holidays, expertise and garments or sneakers, like the newest trainers.
When they’re younger, take them buying to the native markets, take a look at the value labels and pay for objects with money, slightly than paying with a seemingly ‘magic’ credit score or debit card. Cash is a tangible factor – as soon as it’s used, it’s gone. Kids must study that.
2. Introduce them to money
As quickly as your baby can rely, introduce them to money. Show them some Ghanian Cedis and cash and train them the worth of every one. Best of all, play some money video games with them – partaking video games to assist them perceive the worth of cash, rely money and work out change.
You can play these video games on-line or as board video games. Monopoly is an previous favourite that not solely will get kids dealing with money but in addition teaches them the fundamentals of funding. You may also create your personal do-it-yourself video games. After all, what baby doesn’t love setting up and enjoying store? Play and studying actually can go hand in hand.
3. Get them budgeting
Whether your kids earn their very own money with an after-school job or get presents and pocket money from their favourite uncle, it’s value introducing the concept of budgeting early. And make it enjoyable!
Yes, budgeting can actually be enjoyable for those who draw up a colourful chart for them to fill in. Two columns: ‘money in’ and ‘money out’.
For youthful kids, they’ll study to place their money in three totally different piggy banks or jars – money for spending, for sharing/gifting, and for saving. By budgeting, your kids will start to take extra private duty for managing their money.
4. Start them saving early
It’s essential to show your kids that nonetheless a lot money they might be given or earn – they don’t must spend it unexpectedly. It is much better to set some targets and save for the longer term!
In a research finished by Youth Save Consortium, younger folks in Ghana have been discovered to often put aside small quantities of money for future use, and for near-term functions for instance for college provides and private care objects. Very few used formal monetary providers and usually didn’t affiliate setting apart money with reaching a long-term purpose.1
So, assist them open a financial savings account – a digital financial savings account could also be greatest. After all, our kids might be doing most of their banking on-line in the longer term. The earlier you get them to handle their funds on a pc, pill, or cell phone, the higher.
Once they’ve a financial savings account – you’ll be able to take a look at the month-to-month statements with them – and clarify how the account grows due to deposits and curiosity. Encourage your older kids to place bigger sums away for one thing they really need like a brand new bike or pc.
By saving, your kids will learn the way rewarding self-discipline and purpose setting might be.
5. Working for the issues they need
When your baby units their coronary heart on something from a ebook to a motorbike, as a substitute of immediately reaching in your bank card – encourage them to earn the money for themselves. No one needs work interfering with their kids’s research or play, however there are small jobs they’ll do to earn a bit of and pay for the issues they need.
Young kids can prime up their piggy banks by doing family chores. Teens (10- to 12-year-olds) can do babysitting, or gardening. And older teenagers can get part-time work in outlets, eating places, and vacation work in native cafes.
The advantage of this? To give them the duty and self-satisfaction of incomes their very own money and saving from a younger age. In this manner, they’ll actually perceive and start to understand the worth of money.
6. Spending, not overspending
Now comes the enjoyable half. Once your baby has saved the correct quantity, they’ll buy groceries after which spend inside funds. Of course, advise them to not overspend. But so long as they’re mature sufficient, it’s greatest to depart the acquisition selections to them. They actually must be in management of their very own selections with regards to money.
If you assist them develop into sensible spenders, you’ll instill in them some helpful classes about how private alternative pertains to managing money.
Distributed by African Media Agency (AMA) on behalf of WorldRemit.
Sources:
Youth Save Consortium. The Ghana Experiment. Oct 2015
About WorldRemit
WorldRemit is a worldwide funds firm and, together with Sendwave a part of Zepz, a gaggle powering two international funds manufacturers.
It disrupted an trade beforehand dominated by offline legacy gamers by taking worldwide money transfers on-line – making them safer, sooner and lower-cost. We presently ship from 50 international locations to recipients in 130 international locations, function in greater than 5,000 money switch corridors worldwide and make use of over 1,200 folks globally.
On the sending aspect, WorldRemit is 100% digital (cashless), rising comfort and enhancing safety. For these receiving money, the corporate presents a variety of choices, together with financial institution deposit, money assortment, cellular airtime top-up and cellular money.
