By: Sherry Tapfuma
Teaching children financial confidence—from basic piggy bank habits to budgeting and investing—demands patience, intentionality, and a dedication to instilling lifelong financial wisdom.
Speak openly about finances: Foster open, age-appropriate conversations about money to eliminate secrecy and reduce anxiety. Avoid hidden discussions, as they can instill fear or shame. Transparency around family finances cultivates positive financial attitudes and helps children develop a healthy, confident approach to managing money.
Encourage decision-making: Allow your children to make mistakes with their money so that they learn early on what it feels like to have regrets about poor decision-making. Learning to live with the consequences of one’s decisions is an important life lesson.
Demonstrate honesty: Model honesty in all financial matters so your children understand that deceit, concealment, or dishonesty about money is never acceptable. Avoid bargaining unfairly with informal traders; instead, teach the value of supporting small businesses and paying fair prices. As a role model, your financial behaviour shapes your child's perceptions, reinforcing integrity, fairness, and responsible money management from an early age.
Demonstrate how money can be used for good: Through charitable giving, pro bono work, or offering services freely to those in need, you demonstrate the power of money to uplift communities. When children witness the joy and fulfillment that generosity brings, they are more likely to develop their own charitable interests and embrace the value of using financial resources to make a meaningful difference in others’ lives.
Avoid comparisons: Refrain from judging others based on their income or wealth, as this may lead children to equate money with self-worth. Integrity and character are not measured by net worth, so avoid reinforcing this misconception. Similarly, never judge people for being poor. Instead, demonstrate through your actions that a person’s values, kindness, and integrity define their true worth, not their financial status.
Don’t associate spending with guilt: Teach children to make informed financial decisions by researching prices, evaluating quality, and distinguishing between wants and needs. Avoid instilling guilt over purchases, especially when they have carefully considered their choices. Encouraging thoughtful spending fosters confidence and prevents negative associations between money management and shame.
Allow them to work for money: Teaching children the value of money is a timeless challenge. One of the most effective ways to install this appreciation is by allowing them to earn money through work or chores. Assign fair values to tasks to prevent unrealistic expectations. As they grow, encourage them to negotiate their earnings, helping them develop essential financial and negotiation skills for the future.
Encourage entrepreneurship: Foster your children’s entrepreneurial spirit by encouraging them to share ideas without fear of judgement. Avoid dismissive remarks like ‘You can’t make money doing that’ or ‘That’s not a real job.’ With rapid global change, future career opportunities are still unfolding. Support their dreams by helping them research ideas, explore possibilities, and develop the skills needed to turn their ambitions into viable opportunities. Confidence and curiosity will prepare them for an evolving world.
Choose your words carefully: Be mindful of how you speak about money, as negative language can instill a scarcity mindset in children, limiting their financial outlook. A scarcity mentality fosters the belief that money is finite, debt is unavoidable, and financial goals are unattainable. Phrases like ‘I’m broke,’ ‘we can’t afford that,’ or ‘money doesn’t grow on trees’ reinforce financial limitations. Instead, use language that promotes abundance and possibility, such as ‘I need to generate additional income’ or ‘Let’s plan how we can afford that.’ Framing financial discussions positively helps children develop a confident, solution-focused approach to money management and financial planning.
Honour your financial commitments: Teach your children the importance of honouring financial commitments, paying bills on time, and managing debt responsibly. Share your financial goals with them and update them on your progress. Demonstrating goal setting in action is a powerful lesson. Celebrate your achievements together, allowing them to experience the rewards of discipline, perseverance, and smart financial planning firsthand. This practical approach helps instill lifelong financial responsibility and goal-oriented thinking.
* Tapfuma, CFP, is an associate financial planner at Crue Invest.
PERSONAL FINANCE