Handling money from an early age

What you need to know:

Judith Halla,12, believes there are so many ways that parents can use to teach their children how to handle money from an early age. She says one way is to use some chores around the house as a means of teaching children the value of working for money.

Learning how to manage money at a young age can be an important lesson for children of all ages. However, of all the things taught in school, personal finance has never been a topic. Parents, apart from having the responsibility to teach good values and morals, helping their children making good financial decisions at a young age can be helpful for their future.

Judith Halla,12, believes there are so many ways that parents can use to teach their children how to handle money from an early age. She says one way is to use some chores around the house as a means of teaching children the value of working for money.

“I am not saying parents should pay us when we help around the house, say to wash the dishes or sweeping but there are those chores which can be done once in a while. For instance washing a car after which you get paid, that can be one way of teaching us the importance of earning money through decent work,” says Judith.

On her part, Christabela Mahimbo, 14, sees the need for parents to teach their children how to handle money at a young age and says the best way for parents to do so is by making their children realise that each decision they make including the ones involving money can have a good or bad effect on their future.

“For instance some parents can give their children some allowance. Instead of spending it parents can help them learn how to save the money and also how to set a simple financial goal like saving a certain amount to buy a book, game or something of interest that they wish to buy,” she explains.

James Shuma, a financial advisor based in Dar es Salaam says teaching children how to handle money at a young age is very important and that good money habits can start at home. He says from an early age, it is important for parents to show their children how they can earn and spend money wisely and as parents they will need to lead by example.

“Children learn from what they see especially from their parents. That’s why it is easy for them to pick certain habits about money and this can highly be influenced by parents’ spending, saving or budgeting behaviour,” says the financial expert.

He added; “It is very important to show your children the way, but this should be done with caution by ensuring that the method used to teach the children how to handle money at such a young age does not interfere with the ultimate goal. Teaching a child about personal finance is one of the greatest investments that a parent can make in their child’s life.”