| Q: I am sure you would agree with me that being a | | | | well-paid, successful sportsperson? And you didn't buy |
| parent is hard enough. The present global economic | | | | them the required gear, that they didn't practise and |
| situation is making me feel overwhelmed. Now I'm also | | | | you didn't teach them the rules? |
| expected to be my kids 'financial guru'. Straight up - | | | | What chance do they have of becoming that |
| what are some simple mistakes I can avoid to make | | | | successful athlete later in life? |
| sure that I give my kids a head start financially? | | | | NOW is the right time to begin teaching your kids |
| A: I am going to give you six mistakes to avoid with | | | | these crucial life skills about money, especially when |
| your kids so that you and your kids will get started on | | | | they are young. |
| the right track. | | | | Mistake 5: Don't involve your kids in your financial |
| Mistake 1: Teach them to go to school, get a good | | | | matters at home. |
| education, work hard and long until retirement. | | | | Get your kids exposed to your money management |
| Many people expect our education system to get their | | | | at home. eg Let them help you pay the bills, be |
| kids good grades, find a safe, secure job with many | | | | involved in creating an organized filing system, planning |
| benefits, work long and hard and stay there all their life | | | | the family holiday, buying the Christmas presents. |
| until retirement. This formula does not set them up for | | | | I know some of you may feel uncomfortable sharing |
| success. | | | | your financial details with your kids. Great! That's all the |
| Mistake 2: Financial Intelligence begins at school. | | | | more reason to do so. Step out of your comfort zone |
| Our school systems teach our kids how to work for | | | | and take the risk! |
| money, how to get a 'JOB'. Schools cannot teach | | | | Mistake 6: Don't consider giving your kids an allowance |
| everything. NOONE is better equipped and makes | | | | or encourage them to be an entrepreneur. |
| more an influence on our kids than what parents do.It's | | | | It's your turn, as a parent, to decide whether or not an |
| what you and I do and say and what experiences we | | | | allowance is the best way to educate your child about |
| give our kids about money in their spare time that | | | | financial responsibility, to encourage decision-making, to |
| develops their financial IQ. | | | | develop a sense of independence and accountability. |
| Mistake 3: Making mistakes doesn't help our kids learn. | | | | Allowances will help your kids discover how they |
| You're aware that there are two ways of doing things | | | | spend their money, how they save and donate money, |
| in life. 1) Play it safe, do things the way you've always | | | | how to budget and how to make mistakes with small |
| done things, stay in our comfort zone and not change. | | | | amounts of money. Oh yes, they could even stop |
| or 2) Take risks, try something different, change | | | | nagging you for money and you may end up handing |
| everything, throw away the old and try something | | | | out less to them. |
| new. | | | | Can you see from these 6 mistakes that this means |
| It is an absolute fact that risk-taking behavior is crucial | | | | that your children are intently watching and learning, |
| for proper development of your kids. It is their way of | | | | consciously and unconsciously, from what you DO |
| testing limits, discovering the world around them and | | | | with money, what you SAY about money and from |
| dealing with their fears. Kids who take risks will grow | | | | the EXPERIENCES you're providing them with regard |
| up to be more willing to accept challenges, less fearful | | | | to money? As you avoid these mistakes, remember |
| of new things, and most importantly have more | | | | then that your actions mean that you are giving them |
| confident in their day to day lives. | | | | every opportunity to live an abundant, successful and |
| Mistake 4: Leave it till later to start your kids. | | | | happy life. |
| Just imagine that your child wanted to become a | | | | |