Teaching children how to be financially savvy
WE teach our children to be kind and to be safe but when it comes to money matters, it’s a grey area.
It starts with a piggy bank and a pat on the head, accompanied by “now you can start saving for that bike”.
But like learning to ride a bike requires careful practise, so too does raising financially independent kids.
Research shows that South Africa has a notoriously poor savings culture. As parents, we can break the generational curse by instilling financial confidence from a young age.
Reading between the lines
Children’s book Little by Little tells the tale of Anele, a young squirrel, who learns that saving and investing takes time and lots and lots of patience.
Authored by Christina Castle and illustrated by Carla Kreuser, the Little by Little is a sequel to the first book in the series from Foord Asset Management.
“Research has shown that by the age of 3, children can grasp basic money concepts,” said Foord asset management director Brendan Africa.
“By the age of 7, most children have already established lifelong money habits. By starting young, we have a greater chance of creating a culture of saving and investing among South Africans.
“These books make it so easy for children to understand the core principles of investing.
“They explore concepts such as time, saving, income generation, compounding, diversification, risk, patience and investing for the long term, without the use of jargon,” said Africa.
Little by Little has been translated into Afrikaans, Xhosa and Zulu. The book is now available free to schools, libraries and community centres in South Africa.
To access the PDF version, visit: https://bit.ly/2UR6Eze.
Finding the dragon
Children learn by using their imagination and fantasy and that’s why it’s so important to incorporate these aspects into play.
It’s for this reason that Sanlam launched its interactive Sanlam Savings Jar. The app introduces children to the wonder of saving and helps them start a journey of financial confidence.
Children become young dragon masters embarking on a fantastical quest. The more they save, the more their mystical dragon grows. Gamification is used to incentivise goal setting and bring the topic of saving to life.
“We know that gamification is a powerful means to educate young people,” said Mariska Oosthuizen, head of brand at Sanlam.
“The Sanlam Savings Jar breaks down basic financial concepts, like planning, goal setting, needs versus wants, and appreciation of money and how to earn it.
“It’s critical to teach children these concepts early on as habits are formed from as young as 7.”
The app is available to download on iOS and Android.