7 money principles for parenting

We often battle to talk about money among ourselves, let alone our kids. But if we don’t teach them, how will they learn?

According to the website annuity.orgopen_in_new researchers from the University of Minnesota suggest focusing “children’s education about money on the concepts of earning, spending, saving, borrowing and sharing”.

Closer to home, SA Research reports that in 2023, researchers Adam Ndou and Sam Ngwenya investigated the impact of parental financial socialisation on financial attitude among young African adults in rural and low‑income areasopen_in_new (according to rcs.co.zaopen_in_new).

Their results showed parental financial communication and teaching had a significantly positive effect on young adults’ financial attitude. Direct communication and financial instructions meant more than parents trying to be role models. 

The Financial Sector Conduct Authorityopen_in_new, an entity that does a lot of work around financial literacy, proves that even very young children can be empowered with knowledge. They want to make greater inroads with their Grade R Financial Literacy Festival.  

So, what should parents share with their children?

I believe in the solid principle to not talk about financial challenges a child cannot do anything about. Children are perceptive – they’ll pick up on financial strain soon enough without being handed the weight of it.

Also, one doesn’t want to raise a child with a mentality that money is always scarce. We live in a society that hails abundance, but that’s not the issue here. One must just be wary of always looking at the negative side.

I love the story of a mother who out of necessity brought her children up on a diet of potatoes only – and they believed it was great, because it was on a table as a different dish every night, and she raved about how nutritious it was.  It’s a reminder that children interpret reality through the lens we hand them. Yes, life is hard, but it’s also what we make of it.

But you can’t spend it all either. We have to think of tomorrow. Teach the importance of savings, and practice what you preach. As the South African researchers pointed out, demonstrating how to budget or save also supports the development of good financial habits and knowledge.

Then, everyone in the household must do their bit. One shouldn’t pay a child to do chores, only if they do something beyond everyday musts like helping to sort out the garage.

Pocket money that runs out should not necessarily be replenished. How else will a child learn responsibility with money? The question is what and why more is needed, and if it is a legitimate answer, the prospect will be considered.

If a child is spending recklessly, it’s essential to speak up. But instead of scolding, offer perspective. Encourage them to invest in value – quality often outlasts quantity, and that’s a lesson worth remembering.

Finally, dreams deserve priority. If a child is passionate about something – be it music, robotics or baking – and it fuels their growth, supporting that pursuit is never a waste. When they’re putting in the effort, even contributing financially themselves, it’s a sign that the investment is meaningful.

And perhaps the most enduring lesson of all: nurture individuality. A child who believes in themselves and lives by strong values is less likely to chase superficial comparisons. Confidence and authenticity are the true currencies of a fulfilled life.

As the twig is bent so is the tree inclined. Let’s cultivate our children from a young age to grow into solid oaks of financial wisdom and steadfastness.