Page 11 - INSIDE ACCESS OCTOBER 4TH ED.

INFO ZONE Make it fun – gamify if you must
Children (and even teens) have a very short attention span. Even normal classes on finance and economics are sometimes seen as boring. So how do you ensure your young one learns, understands, enjoys and applies smart money principles over time? The answer is simple – gamify. Teaching children money lessons in a lively fun way helps them grasp the concept faster. Another way to engage them, is to allow them to play both manual and virtual money games. Games like Monopoly can help drive the lessons faster while having fun. Older kids can also be taught investing using online simulators.
Decision and choices
Every parent has been in a situation where their child has demanded something that was not essential. While saying “no” may be a tempting response, it may not convey the why.
A better way might be to educate the little one on the cost of such request and guide them to a logical conclusion. Even if not seen (yet) by them, you can help them understand “the why” to your refusal. This can be helpful when they come along grocery shopping etc. When done right, kids will see that they always have choices and will step back to evaluate their decisions before making them.
Give them pocket money but hold them accountable.
While it’s entirely up to you if your kids should have an allowance, at the appropriate age, amount and frequency it should happen; it can be an avenue to teach them lifelong money lessons. Planning, budgeting, proposal, accountability, fiscal discipline, delayed gratification, goal setting, savings and investing are concepts that can be hinged on this. For instance, you can work with them to save and spread the payment of an item they want over time, while being accountable for their own (little) finances. The thrill of experiencing delayed gratification will serve them for life. They can also learn simple money concepts like interest and compounding. The pay-offs here are vast and impactful.
Teach them savings and goal setting
This is similar to the above. Helping them understand why they should set aside a fraction of their allowance is only but part of the money learning curve. Knowing where to keep it and how to keep records is also a desirable fiscal skill. For instance, opening an Access Bank Early Savers Account will give them the confidence they need to handle finances way before they become independent. They also learn how to set and pursue goals which will
serve them in other aspects of their lives. They also start to understand the business numbers behind the career path they want to choose.
Let them enjoy the risks and rewards When kids do well and show promise, say they hit their savings target for that toy they want or make a wrong decision, allow them to experience the consequences good or bad. Don’t deprive them if they succeed, neither should you be quick to rescue them if they fail. Rather applaud and advise, help them sieve the valuable lessons from the process.
Talk to them often to evaluate
Communication and learning are equally important to the journey. The process is just as important as well as the short term destinations. Talk to them, listen to them and gauge the learning and growing process. Of course, they will make mistakes and experience triumphs, help them reinforce good monetary behaviour and discard irrelevant ones. This will also help the bonding process. When they become young adults and need financial advice, guess whose advice and opinion they’ll seek and respect? Yours.
PAGE 11 INSIDE ACCESS | OCTOBER 2020 4TH EDITION