In many parts of Africa, Nigeria included, children, are barely trained on how to manage their finances. Financial literacy is one thing that is far from the curricula of many schools, both secondary school level and tertiary levels. Many children end up growing up not know how money works and the way to gain financial independence.
In a country like Nigeria, where the poverty level is on the rise every day, it is very important that children are exposed to some fundamental knowledge of how money works. Many children do not understand simple concepts such as savings, a loan or even investment. Even for some rich parents, they assume that such knowledge is not important since their children are already born into wealth. But then, how do you expect them to make good choices with their finances when they have a poor understanding of their finances.
It is time that parents take a shift from grooming their children to be dependent on them and learn how to attain financial independence. As a parent, it is never too early to help your child understand the importance of savings. Even if they are still dependent on you for every one of their needs, make them feel some sense of financial independence by opening a savings account for them that you encourage them to save in.
The earlier you are able to promote a savings culture in a child, it better you position that child to make wise decisions about their financials. There are several ways you can help your child understand how money works. Some of them include:
- Exposing them to books, TV shows and other materials that talk about finances.
- Teaching them about finances and encouraging them to save.
- Using your daily experience at work as a guide for them.
Children will only enjoy savings and in the long run, grow to make wise investments when you groom them to be able to. Remember, it is never to early to have “money talk” with your child.