Parents should teach their kids money management

One of the most important things a parent can do is to teach a child how to manage money.

Money doesn't grow on trees - or in the garden.

One of the most important things a parent can do is to teach a child how to manage money.

Parents should encourage their children to contribute to society and to acquire work as soon as they are ready and able to do so.

Adolescents and young adults living at home should be encouraged to pay for, or at least contribute towards their board, education, holidays and first car as this not only teaches sound financial management, but also the value of such things.

Without an understanding or appreciation for money and the value of the things which one can buy, some fall into the trap of wanting to acquire everything NOW!

Accumulating wealth is simple. Any monkey can do it. If you can't afford it, don't buy it.

Today's society supports an insatiable desire for consumables that quick fixes like credit cards, After Pay and loans can make possible, without working hard and setting long and short-term financial goals.

Far too many people live like this, and much of it is due to bad parenting and/or a lack of financial education.

I have absolutely no sympathy for people who find themselves in dire straits due to living an unsustainable, hand-to-mouth existence from pay cheque to pay cheque.

Even those on a basic salary should have some savings and an emergency fund.

My grandma used to always say that you should be able to put your hands on at least enough money for a brand new refrigerator in your emergency funds. She was very wise.

Originally published as Parents should teach their kids money management