PAL Pensions is currently working towards bridging the gap between hardworking youths and financial literacy. Nigerian youths are very industrious but oftentimes they lack the right financial education to go with it. This is hardly their fault as financial security is not taught in schools or by parents.
Parents want nothing but the best for their children. They work hard to provide for them, support their dreams, and prepare them for the future. But beyond school and important life skills, one lesson gets overlooked, how to be financially independent.
Teaching your child about financial independence is one of the most valuable life lessons you can give them. It does not only apply to starting a business, saving money, or spending wisely. Financial independence means being able to cover your needs without relying on others. Teaching them the right tricks and tips would help them grow into responsible adults who can manage their own money, make informed decisions, and build a secure future.
Children form habits early. When you catch them young, you give them a head start. When they learn how to manage small amounts of money responsibly, they build the skills they will need later for bigger decisions like choosing a job, handling expenses, or planning for retirement.
Early financial education also encourages confidence, independence, and smart decision-making.
Teach Them The Right Money Lessons
- Give them opportunities to earn: Whether it is by doing small chores around the house or a small side hustle as they grow older, earning money teaches them to put in the right effort for the right amount of reward.
- Encourage saving: Help them set goals like saving for a toy or an experience they have been looking forward to and celebrate them when they reach it. This would build confidence in them and help them become a lot more financially secure.
- Talk about spending: Parents are more aware of bills than children. Do not pressure them into spending on what you deem the most important. Let them make choices with their money, even if they make mistakes. That is how they learn.
- Introduce budgeting: Teach them to divide money into needs, wants, and savings. This would help them understand what needs to be prioritized and what does not. This is a valuable habit that will serve them for life.
- Have good financial habits: Children watch more than they listen. If they see you budgeting, saving, and planning, they will likely follow suit. If you are a reckless spender, do not be surprised when your child emulates your financial behaviour.
When a child understands how money works, they are more likely to value it.
