Mother’s Day was once an opportunity for fathers to coach their kids in the art of spoiling their mothers, along the lines of breakfast in bed — along with pricey gifts like roses and chocolates.
Today that has changed in many families. For one thing, money is tight.
For another, more often than not, it is mom who embraces the vital role of monetary adviser, building the financial skills from a young age – especially in households where one income often supports a number of people – skills that will later shape the child's financial future.
RCS human resources head Sandi Richardson says mothers are often the family's silent chief financial officer, and not only in single-parent families.
They teach financial literacy as they raise their families, by encouraging responsible habits and educating children about the true value of money
“They teach financial literacy as they raise their families, by encouraging responsible habits and educating children about the true value of money.”
RCS is a subsidiary of BNP Paribas, the sixth largest bank globally. It has 2,2 million customers and services 600 large retail owners.
A study on families in the Eastern Cape found that a strong parent-child relationship leads to better financial behaviour among young people.
“Financial behaviour is most often formed by relationships within families, during everyday interactions and experiences,” explains Richardson.
Today there are budgeting apps for kids, often in the form of a free resource, to help youngsters learn to control personal finances.
But farm more important, studies show, is that when caregivers demonstrate financial discipline, prioritise savings, and make informed financial decisions, their children are more likely to adopt these habits.
And conversely, children are quick to pick up irresponsible spending patterns as well.
“There is a reason for the saying that an apple doesn’t fall far from the tree – children absorb the behaviours of their parents, whether intentional or not,” said Richardson.
She encourages mothers to include their children in routine bill payments and monthly budgeting discussions to demystify money management, familiarise them with routines and help them understand the ins and outs of it.
Richardson said mothers can provide practical insights and tools – like savings goals – when interactive money challenges arise.
“When our kids see the reality of household expenses, they gain a better appreciation of financial responsibility.”
For children to grasp the importance of money – and the pain of having to live with a shortage – smart mothers should include their kids in budgeting exercises.
Financial education can be made into fun with creative and interactive games that demonstrate the value of money.
Practical approaches include envelope budgeting, where money is allocated into labelled envelopes for different expenses to visually demonstrate spending limits.
Setting savings goals can teach children delayed gratification by encouraging them to save towards a specific reward, such as a toy or an outing.
Setting “money challenges”, like finding the best deals on grocery items or earning extra money through monetising chores, are fun ways of teaching important skills and attitudes.
“There are amazing budgeting apps these days that are designed especially for kids to help them track their allowances and spending patterns in an interactive way,” says Tali Anderssen, Richardson's colleague at RCS and mother of three kids.
Anderssen has seen the benefits of financial education in her own home.
“We set up a monthly family finance challenge where the kids track their expenses and try to save a portion of their pocket money. Seeing their progress motivates them to make smarter spending choices,” she shares.
Anderson said RCS hands out free credit reports via its Credit Gateway, in partnership with Welltec, a financial technology company that offers a number of accessible tools and free resources and tips that parents can use to help build wealth-building skills.
These include financial planning guides and a debt management advice service.
“These resources are designed to empower families with the skills needed to make sound financial decisions. When parents strengthen their own financial understanding they pass these lessons on to their children.”
DispatchLIVE
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