Raising money-smart children: 10 tips for parents this Financial Planning month

BUSINESS NEWS - Therèse Havenga, Head of Business Transformation at Momentum Savings, considers the guardrails for money talk when bringing up children.

This World Financial Planning Month reminds us that some of the most important conversations about money are also the hardest, especially with our children.

Many of us grew up in homes where money was not openly spoken about, which can make it difficult to know where to begin.

Yet children notice more than we think, and the lessons they carry into adulthood often come from the small, everyday moments we share with them.

Research shared on annuity.org from the University of Minnesota suggests that children’s money lessons should start with the basics, 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 areas (according to rcs.co.za).

The study found that when parents spoke openly and gave clear guidance about money, it had a strong positive impact on young adults’ financial attitudes. Direct conversations and practical teaching made a bigger difference than simply trying to set an example

Even very young children can start learning about money, and the Financial Sector Conduct Authority is helping make that possible. Their Grade R Financial Literacy Festival is one way they are giving little learners fun, practical lessons that build confidence and understanding from an early age.

So, what should parents share with their children when it comes to money? Here are some lessons that can make a real difference:

Shield them from what they can’t control
Don’t talk about financial challenges a child cannot do anything about. Children are perceptive and they will pick up on strain soon enough without being handed the weight of it.
Encourage a balanced view of money
Help children understand that while resources can be limited at times, money is a tool, not a source of constant worry. Life has its challenges, but teaching perspective and balance helps them approach it with confidence rather than fear.
Teach optimism through context
A mother once raised her children on potatoes only but presented each meal differently and spoke positively about its nutrition. Children interpret reality through the lens we provide; yes, life is hard, but it’s also what we make of it.
Instil the value of saving
Teach the importance of savings and lead by example. Show how to budget or save, as practical demonstration supports good financial habits.
Everyone contributes
Household chores are a shared responsibility. Avoid paying children for everyday tasks; reward extra effort instead.
Teach money responsibility
Don’t automatically top up pocket money. Let children experience limits, understand the “why” behind requests, and learn accountability.
Guide, don’t scold
If a child is spending recklessly, speak up with perspective, not criticism. Encourage them to invest in value and quality which often outlasts quantity.
Support their passions
Encourage pursuits that fuel growth, whether it’s music, robotics, or baking. Even when children contribute financially, their effort makes the investment meaningful.
Nurture individuality
Confidence and authenticity are the real currencies of a fulfilled life. Children who believe in themselves are less likely to chase superficial comparisons.
Shape strong foundations early
As the saying goes, “As the twig is bent, so is the tree inclined.” Cultivate children from a young age to grow into solid oaks of financial wisdom and steadfastness.

Conversations about money does not have to be heavy or complicated. What matters most is consistency, honesty, and age-appropriate lessons that empower children rather than burden them.

Every chat about saving for something, deciding between needs and wants, or contributing to the household builds resilience and responsibility.

By planting small seeds of wisdom today, parents and caregivers can help their children grow into adults who feel confident, capable, and ready to navigate life’s financial journey with balance and optimism.

Therèse Havenga