Financial Parenting Skills

The Power of Financial Parenting

1. What financial habits or beliefs are you teaching your children? 

2. How do you want your children to relate with money when they grow up? 

3. Are you teaching your children how to network, save, and invest their little savings? 

These and many other critical questions highlight the power of financial parenting. Your children aren't too young to learn about money. The first school where a child learns about how money works is at home.  The other modelling schools are: the neighbourhood, peer group,  mass media, traditional school system and the church/mosque.

Three Key Financial Lessons 

1. Teach your children by example. Teach them about savings,  open  a cub or jumbo junior bank account in your name using their birth certificate and reward them gradually to reinforce the saving habit. 

2. Guide them in drawing a budget. Show them how you budget for domestic expenses and take them to the shop or suppermarket. Let them pick budgeted items and do the calculations as per the  available money and the spending plan. Watch them and allow them enjoy the experience as you guide where necessary. 

3. Show them how you do your business, or earn your income. Lead them to your office, where you buy goods from or how you do consultancy and where you save and how you invest your money e.g. Mshwari Lock Savings Account,  bank account,  stock market,  unit trusts, government securities, property and real estate. 

Food for thought

1. "Train a child in the way he should go: and when he is old,  he will not depart from it." Prov. 22:6

2. "A good man leaves an inheritance to his children's children." Prov. 13:22

#PractiseFinancialParenting

#ModelYourChildFinancially

#ImproveYourMoneyRelationship

Chachanomics 101: Transforming Lives

Comments

Post a Comment

Popular posts from this blog

The Importance of Writing a Will

Why Should I Write a Will? Writing a will is a very sensitive, emotive and controversial subject especially in the African context. People view discussions about writing a will or death as a bad omen similar to inviting death into our lives.  Many people ask certain fundamental questions such as: 1. Is it necessary to write a will?  2. How will my family benefit from my will in case I write one?  3. What is required for one to write a will?  These and many other confounding questions reveal that many people don't know what a will is all about. You have heard or witnessed numerous cases of children, siblings or wives fighting over the property of the deceased.  This article will focus on the meaning of a will,  myths and facts about writing a will,  and what is required to write a will.  1. What is a will? A will is a legal document with a set of instructions that specify who should inherit what asset in the event of your demise.  2. What makes people not to write a will? i. It is c
Read more

Chachanomics' Advice Published in Saturday Nation on 17th Dec. 2022

Should I use Sh1.25 million to build my house or start a business? My name is Kennedy. I am married with two children. My wife is a trained P1 teacher working at a private primary school. We live in Nyandarua. I am employed on a permanent & pensionable terms with a net salary is Sh36,000 and my expenses are as follows: school fees 6,500, wife 2000, househelp 4000,, shopping 6500, food 3000. I don't pay rent as  I have set up temporary house on my plot. I also have savings of 240k at a Sacco. I want to take a loan of Sh1.25 million and the following projects are running through my mind: 1). Build a 3 bedroomed house worth Sh2.5 million that I have bought materials of approximately Sh370,000 for I sourced thses funds through my monthly salary for the past two years. These materials are at my plot where I live and intend to build a permanent house. I'm dead set against building the house through loans and as such, I was thinking of building the said house using my monthly sala
Read more

Financial Tips: What Are Mutual Funds?

One of the dependable ways of creating passive income is through building a sustainable portfolio income of paper assets – investments literally on pieces of paper that define ownership of assets such as shares, mutual funds, stocks and government securities. This article examines mutual funds as part of the paper assets. Mutual funds comprise a pool of funds collected from investors for the purpose of investing in securities like stocks, bonds, money market instruments etc. Also called unit trusts because one buys a fraction or unit costing kshs. 100 or multiple units. They are operated by professional fund managers who invest the funds’ capital to produce capital gains based on market trends.   Mutual fund providers in Kenya include Britam, Old Mutual, Zimele, CIC, UAP, Amana etc. Interests per annum varies according to market forces – for instance 5 - 12%. They are run professionally by experts who give small investors access to diversified portfolio. They are open-ended and affo
Read more