Making financial literacy a family affair

“Our money values project aims to get the nation talking about money – for all the right reasons. When we change our money values, we’ll change our destructive money behaviours,” says Lovey Lerato Jaxa, Money Values Facilitator at Heartlines. “Many parents face the challenge of how to teach their children about money when they are still learning or struggling themselves.”

For example, one of the parents at a Heartlines workshop said, “My child came home from school and asked me to help him set up a budget that he needed for a project. I pretended I was too busy working to help but the truth is I have no idea how to budget myself, so how could I help him?”

Jaxa suggests that instead of trying to be the financial expert, parents could consider going on a joint learning journey with their children during Financial Literacy Month.

“Teaching children financial literacy early alongside strong personal values sets them up for a lifetime of good money habits,” says Jaxa. “There’s a saying in IsiZulu: ‘Ligotshwa lise manzi’, meaning ‘it is shaped while still wet’ that perfectly shows the importance of instilling these lessons while children are young.”

Overcoming poor money habits and teaching healthier ones

Of course, overcoming damaging money attitudes and habits is easier said than done. “Many of us parents struggle with money because we were never taught financial literacy, and we have learned money habits from our parents, who weren’t financially literate,” says Jaxa. “This creates a cycle of poor money habits passed down from one generation to the next. Another rising challenge is the normalisation of bad relationships with money within our society, for example through social media glorifying quick wealth.”

Derek Muller, Money Values Project Lead at Heartlines, says the best place for children to learn good money habits is at home. “The most important thing is for children to tell the truth when it comes to money issues. And as the kids grow older, for their parents to tell the truth!”

This is based on the first of five money values Heartlands focuses on, called “honesty in earning”. Muller explains that no matter how much or how little money we deal with daily, we are all faced with choices that involve being honest about money – or not. “Do we take things from work without our boss knowing? Do we put our real income on our tax forms?” he says. “Being honest with money is more difficult when people around us are being dishonest. Crime and corruption happen because of people's dishonesty. But we all have the chance to make better choices, and that is a lesson we can teach our children from a very young age.”

Heartlines suggests the following ways that families can encourage better financial behaviours:

• Encourage children to save with a piggy bank. This teaches the values of patience and self-control. Muller suggests giving children a fixed amount of money each week and working with them to help them save a portion of this.
• Start small and keep going. Financial literacy is a journey – not a one-time lesson. “Learning alongside your children makes the process more natural and effective,” says Jaxa. “Start by saving money with your children for small things and celebrate milestones together. Teach them to budget for everyday things like their skaftin (lunchbox) groceries. This helps them build good habits in the long run.”
• Teach children to ask important money questions. Muller says these include: What money do I have? What have I spent money on? How much do I want to save? What will I spend my savings on? How will I make sure I save money?
• Access helpful resources. Heartlines has a collection of stories for primary school children that talk about money, as well as a free downloadable youth resource, and various other articles, films and guides on its website. Muller says that parents shouldn’t feel alone in the financial literacy journey – if they aren’t confident to teach their children financial skills, they could ask a trusted friend or family member to help. Jaxa says most South African banks also have free financial literacy guides available for parents wanting to improve their own financial knowledge.