Raising a child in South Africa may be one of the most expensive things you ever do. In fact, Sydney Sekese, certified financial planner (CFP) and winner of the 2016 Financial Planning Institute’s Media Award, compares it to a second house bond. Raising a child is a long-term commitment that could last over 23 years! Research indicates that it cost about R 90 000 a year to raise a child. This means that (not taking into account inflation or growth) you’ll be spending about R 2 070 000 by the time your child is 23 years old.
If you are thinking about starting a family or already have children, it’s important to manage your finances wisely. Getting your children involved in helping you save money will help you in the long run! Here are some important tips when it comes to involving kids in family finances:
#1. Make sure you and your spouse are on the same page
If you are married or raising a child with a partner, before you start speaking to your children about finances, make sure you two are on the same page when it comes to your household budget. This way, you can ensure that you convey consistent messages to your children.
#2. Set a savings goal for your family
By getting your whole family involved in a saving goal, you can use this an opportunity to teach your children about saving. Make sure your goal has a target and a reward for your family once the target is reached. Perhaps your goal could be saving for something that the whole family can benefit from, such as a weekend away.
#3. Let your children choose their extramural activities wisely
While you may want your kids to be involved in as many activities as possible, this can become very costly. Instead of letting your children “do everything”, let them choose one or two activities they love the most. This way, you’ll prevent spending too much money on activities while still letting your children do what they enjoy.
#4. Plan family outings together frugally
Involve your whole family in planning family activities together. You can ask your kids to come up with budget-friendly outing ideas and ways to spend time together. Whether it is setting up a movie night at home or a picnic in the park, there are many fun things to do as a family that don’t cost a fortune!
Read our blog: 7 Ways to have fun on a tight budget
If you’re worried about your family’s financial security, let Debt Rescue help you. We’ve helped thousands of South Africans become debt free. Speak to a debt counsellor today.