Teach children to save money from an early age

This January has to be the fastest we've lived through.

We're now waiting for aboBoda Smandana (those who get paid month end) to get those notifications.

Hang in there guys, payday is just a day away. I must say, this year's January was not Januworrying. This must be because many of us had properly saved money and used our salaries wisely as we knew it would be long before the next payday.

To those who were able to save – no matter how little – you did well. We go again in 2025 and beyond. If you were not able to save for whatever reason, may things be different in 2025 so that you too may have a breather.

As we close the first month of the year, take a pause and look at your savings goals. Is your target the one? Will you be able to achieve it without any problems? If all is in place, let's go ...

But as we set savings targets for ourselves, let's not leave the little ones out in the cold. They need to learn about the importance of savings and personal finance at an early age.

Atlas Finance director of risk Niresh Gopichand emphasises the importance of early financial education in improving literacy rates, adding that the beginning of the year is the perfect time to start as families start drafting their budgets.

“With nearly half of South Africans considered financially illiterate, teaching children about money is a crucial skill that parents should prioritise. According to behavioural experts David Whitebread and Sue Bingham from the University of Cambridge, children begin forming money habits as early as seven years old,” says Gopichand.

“It’s [beginning of the year] a period when money decisions are visible and necessary, creating natural opportunities for children to engage in budgeting and spending conversations. Money doesn’t have to be a mystery; it can become an exciting and empowering part of your child’s life.

“By teaching children that financial success starts with small steps, it stands them in good stead for how they approach money as adults. By starting the process early, we equip them with the skills to confidently manage money. As they mature, they’ll be better prepared to handle more advanced financial concepts like investing, borrowing and building a credit profile,” says Gopichand.

Gopichand gives five creative ways parents can integrate money lessons into everyday planning:

Make a wishlist: Start the year by helping your children create a wishlist of items they’d like to buy, such as school supplies, books, or toys. Work together to categorise these items into short-term and long-term goals. This exercise teaches the importance of prioritising needs over wants and the value of goal setting.

Budget like a boss: Assign your child a small amount of money to manage for school-related purchases or recreational activities. Let them decide how to allocate it, track expenses and balance their funds. This hands-on experience encourages budgeting skills and helps them appreciate the value of planning.

Needs vs wants challenge: During shopping trips, turn decision-making into a game by discussing whether each item is a need or a want. Encourage creative alternatives, like re-using or re-purposing items instead of buying new ones. This challenge builds critical thinking and fosters smart spending habits. They do not have to buy brand new stationery if there is perfectly good stationery from last year.

Hunt for bargains: Make bargain-hunting a family adventure. Teach your children how to compare prices, look for discounts, and find the best deals online or in-store. This activity reinforces maths skills and shows how patience and research can stretch money further.

Save before you spend: Set up a savings jar or a digital savings tracker for your children. Encourage them to save a portion of their pocket money or gifts towards a meaningful purchase. Once they reach their goal, discuss investing options such as a savings account or, for older children, buying a small share. This fosters delayed gratification and introduces basic investing concepts.

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