There is a famous saying that prevention is better than cure. In other words, if you don’t pick up bad habits and questionable ways of doing things in the first place, you won’t have to worry about how to cure them. The same applies when it comes to how to stop spending money.
If you do find yourself spending more than you should do, you might find these tips on how to cure overspending handy. But just imagine that if you had been taught as a child by your parents how to spend money wisely, you probably wouldn’t need a cure in the first place. So, if you have children of your own, now is the time to teach them good habits.
Poor role models tempt children into debt in later life
Kids take their markers from their parents. If both mum and dad smoke and drink, for example, their children are likely to follow their lead when they grow up. The same goes for spending money. If the parents have a carefree attitude towards using up their money, so too could their children when they have money of their own.
Life lessons are beginning to be taught in some South African schools these days, and financial literacy teaching is being taken up by more and more establishments. But like so many lessons in life, the best place to start is at home.
Introduce your kids to prepaid cards
Some parents are now using prepaid cards as a way of teaching their offspring about handling money more wisely. It goes one step further than just lecturing kids about spending their pocket money wisely. It also teaches them about choosing and using credit cards wisely (albeit in this instance we are referring to prepaid credit cards).
When people talk about parenting skills, the focus is usually about teaching children the correct way to behave morally correctly. But learning the importance of money and how to control the way it is spent is a key area too.
The less money that people spend – especially on non-essentials and impulse buying, the more money is likely to be left over at the end of the month. You can then save any surplus and this too, is not only crucial from an adult’s point of view, but it is also critical in terms of giving your children a financial education.
How to change SA’s debt culture into a savings culture
As South Africa has more of a debt culture than a savings culture, getting children and young adults into the saving habit is essential; not only for the sakes of the individuals but also for the South African economy too.
In an article published on the Alexander Forbes website, Kerry Sutherland, the senior wealth manager for Alex Forbes Financial Planning Consultants, reinforced the fact that parents can teach their little ones about creating a savings culture when they hand over the kids’ pocket money.
Teaching your children to save at least a portion of their pocket money for a special purchase rather than blowing it all away as soon as they’ve been given it, is a crucial step in helping them to stay out of debt in adulthood.
It’s all very well knowing how to stop spending money unnecessarily In adult life, but if you can educate your children along the way, they may never have to face the problem at all when they grow up. It’s a great example of prevention being better than cure.