Being financially literate is vital in today’s money-driven society. While many parents may struggle to keep up with their children’s spending habits, studies have shown that – in most cases – children raised by a single parent are more financially savvy than those raised by two-parent families. However, this greatly depends on the financial lessons that single parents teach their children. If you are a single parent, and you are concerned about whether or not your child would make the right financial decisions for their future, teach them these tips:
Teach them to save young
As a single parent, chances are that at one point throughout your years of parenting, your child has seen you struggling financially. Teach your child to start saving their money in order to avoid having to struggle with money themselves. Give them a moneybox, and let them put a portion of their pocket money away every month. Even if they start with as little as R10 a month, teach them the importance of saving every month. Once they are old enough to open a savings account, teach them to put a bigger portion of their pocket money – or salary – into their accounts.
Teach them to be financially independent
In most cases of single-parent homes, there is no financial support from the absent spouse, and usually very little to no financial help from other sources. Even if you have a solid career, your own savings, and the necessary skills to thrive in another field should anything ever happen, it is normal to rely on your spouse to help support you and your family. However, when that spouse is no longer there, you need to put an emphasis on being financially independent, and not to rely on anyone else.
Teach them to prioritise their spending
If your children participate in extra-curricular activities, chances are that paying for their sports gear, ballet shoes or musical instruments may be a high priority for you. However, these expenses can lead to you accumulating debt in order to pay for it all. Cutting back on spending in other areas would allow you to pay for these extracurricular activities without going into as much debt. Teach your children to prioritise their spending by cutting back on things that are not important, so that they can spend their money on things that they really want and need.
Being a single parent doesn’t mean that you have to fall into a debt trap, it simply means that with a few lifestyle adjustments, you will be able to provide yourself and your family with financial security. However, if you find yourself in need of cash before your salary arrives at the end of the month, apply for a PayDay Loan and receive instant cash in your bank account.