As schools reopen across South Africa, millions of learners are heading back to the classroom at a time when household budgets are financially strained. Rising living costs, stretched incomes and economic uncertainty have made one thing clear: Understanding how money works is not a ‘nice to have’ life skill – it’s essential.
“Financial literacy is one of the most important lessons children need to learn if they are going to cope and thrive in today’s economic environment,” says Stian de Witt, CFP®, executive head of Financial Planning at advisory firm, NMG Benefits. And it’s a lesson that needs to start long before they earn their first salary.
Research from Cambridge University shows that by the age of 7, children have already formed many of the financial behaviours they are likely to carry into adulthood. This means the early school years are a critical way to shape healthy money habits that can influence their financial future.
Building a strong financial foundation from a young age is important; even Warren Buffett often credits the money lessons he learnt as a child for his long-term success. When children understand money early, they grow up more confident, disciplined and resilient.
It’s never too early to talk about money
One of the most effective ways to teach financial awareness is simply to talk about money at home. Involving children in everyday financial decisions such as discussing a monthly budget, comparing prices at the grocery store or calculating a tip at a restaurant helps them understand that money is something to be managed, not feared or ignored.
Pro tip: Rather let your kids use their pocket money to purchase gifts, snacks at the tuck shop or in the shops. This will teach them the value of money, and the reality of what things cost, but it will help you to maintain sanity while shopping.
“These small, practical moments may seem insignificant, but they are powerful learning tools,” says De Witt. “They teach children how to make choices, prioritise needs over wants and understand the real value of money.”
Budgeting builds confidence and discipline
Helping children create a simple, age-appropriate budget can lay the groundwork for lifelong financial discipline. This could be as basic as dividing pocket money into spending, saving and giving, or opening a savings account and depositing a portion of their allowance each month.
“When children see their savings grow, they begin to understand concepts like delayed gratification, goal-setting and even compound interest,” says De Witt. “These are skills that will benefit them long after they leave school.”
Children learn by example
Parents and caregivers play an important role in shaping money attitudes. Children are far more influenced by what they observe than what they are told. It is not enough to teach children about budgeting if our own behaviour doesn’t reflect it. Consistent, responsible money habits at home send a far stronger message than any lecture ever could.
Teaching the value of earning
Pocket money is another valuable teaching tool, but only if it’s linked to effort. Encouraging children to earn money through age-appropriate chores helps them understand the connection between work and reward.
For older kids, part-time jobs like packing groceries or waiting tables do more than teach money management. They build responsibility, teamwork and resilience – skills that are just as important as academic results.
Financial education takes time and consistency, says De Witt, “but the payoff is enormous. When children learn to manage money wisely, they don’t just survive financially but it sets them up to be better positioned to succeed in the future.”
Image credit: Freepik/jcomp
