It is not too early to introduce a child of primary school age to values of money. Teaching them essential concepts of money can help them make smarter financial choices as they grow older.
Experts say the first step for parents in the up bringing of children is to start talking about money issues at home. They believe that a child should start knowing about money even when he is in primary three. They should know cost and effect of money. They should know that the clothes they wear and the food they eat are bought with money.
Adewale Adeleke, managing partner, WA Professionals, Lagos, said: "It is wise to teach children about money at early age, as early as when they can count. The children at that age learn fast by observation; therefore, conscious effort must be made to train them on the right attitude early."
He added that children can be introduced to money through the following means- communicate with children as they grow about your value concerning money, introduce children to value of saving versus spending, when children are given an allowance, give them the money in denomination that encourages saving, take children to bank to open their own savings accounts, keep good records of money saved, invested or spent is another important skill young people must learn, use regular shopping trips as opportunities to teach children the value of money, allow young people to make spending decisions, and alert children to dangers of borrowing and paying interest.
To Goddy Ikeh, chief executive officer of Fortworth Communications Agency, there is nothing wrong in teaching children about money. "Children will need money in their dealings and daily transactions in life. Most parents who cannot buy snacks for their children often give them money to buy them at school. Although it is not the best practice, the child needs to have a fair knowledge of money in order to embark on such a transaction."
In some households, children at early ages do assist their parents who engage in one form of trading or another to sell within their premises, so for such children, it is necessary that they are exposed to the knowledge of money.
He believes that there should not be any age limit to expose children to the use of money. A child who can recognise numbers should be able to know the various denominations of the currency (money). The actual knowledge of how to make money and manage money can be learnt by the child as he grows up and needs the knowledge to cope with the challenges of life, especially the need to save money for future needs and to donate money for charity, which is lacking in our society.
On the contrary, Alatise Yusuf, managing director/chief executive officer of KC Finance & Investment Limited, Lagos, said: "Morally, it is not wise; economically it is not also wise. If we expose them to money at tender age it might make them not to have respect for money; and economically, they will be demanding for more which will be telling on the family budget. Basic needs should be provided for them, like when they are going to school since they spend 75 percent of their tender age in school, one must ensure that they do not lack anything on the average. So why would they need money?
"In fact, we should not forget that when you give them money it might even be used for other purposes and these may lead to unwarranted freedom and easy access to uncontrollable demands."
As regard age limit, he said one cannot really give age bracket, "but I think secondary school entry level should be ideal, because at that age they are getting prepared for life at lower global perspective. So, they need to be exposed to the art of management."
Source http://www.businessdayonline.com/
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