Learn to Rise

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The Big Millennial Money Mistake What’s the big millennial money mistake parents are making that they must unlearn?

Tip no. 8

Consequences of decision-making

If you’re going to allow your children to make financial decisions, it’s just as important to let them live with the consequences of their decisions without being bailed out by mom and dad. For every action taken there is a corresponding consequence, and there’s no point shielding our children from this harsh reality. Learning financial responsibility starts with taking charge of your money as well as owning the consequences of your poor financial decisions – without blaming others for your circumstances. If your child spent all their pocket money on a new pair of sneakers and has no money left for this weekend’s music festival, that is a consequence of their decision-making that needs to be borne.

Tip no 6

Financial literacy in a digital world

As we head towards an increasingly cashless society, teaching financial literacy takes on a whole new meaning – especially for parents who are less tech-savvy. We need to teach our children to transact safely and responsibly in a digital world, which is something most of us didn’t have to do. Over and above basic concepts such as debt, compound interest, budgeting and saving, it is our responsibility to make sure our children can navigate online banking, shopping and share trading, while at the same time educating them about online scams and fraud

Tip no 4.

The concept of having enough

This generation of children are strong social and environmental activists and, through the power of social media, are acutely aware that many wealthy people (sports stars, film stars, owners of large corporations) regularly donate sizeable portions of their wealth to good causes. The reason ? It turns out that money can only make you happy to a point. While research shows that those earning higher incomes are generally happier, it also shows that there is a satiation point: a point at which having more income will no longer increase one’s happiness. It goes without saying that most of us want enough money to cover our basic needs, live a comfortable life, drive safe cars, pay for our children’s education and enjoy some overseas travel, but how much is enough? Talk to your children about what it means to have enough, what they consider financial freedom to look like, and what a comfortable life means to them

Tip No 2

BUDGETING IS A LIFELONG HABIT

Rather than a once-off exercise, help your children to make budgeting a normal part of everyday life. Like booking a dentist appointment only once our tooth is badly decayed, many of us put off doing our budgets until we find ourselves cash-strapped or in a financial crisis. Unfortunately, by doing so, we inadvertently teach our children that budgeting is a source of stress that should rather be avoided. Make a concerted effort to demonstrate the positive effects of proactive budgeting (telling your money where to go each month in advance) rather than allowing your children to witness the anxiety that flows from a neglected budget.

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