Both my sons save their pocket money and birthday money in a moneybox. My six-year-old spends his money freely on whatever catches his eye, while my elder son just saves and as a result has built up quite a stash of cash. He is saving to buy some Star Wars lego. My younger son had no specific goal until he saw a tent for R200.
So he decided he wanted to count his money; he believed that he had R100 already saved. To his horror he only had R30. I had to remind him that two weeks ago he had bought a toy for R60, and last week a sweet for R10. I was impressed that he had kept track of his “earnings”, but the problem, like with so many of us, was that he had not kept track of spending.
Being six he just burst into a flood of tears. “But all my toys are lost and broken and Joshua has lots of money in his money box.” So I asked him if he would rather have R100 or the toys that he had bought — it was no contest, he would rather have the money and save up for something really special than have the broken and forgotten toys (and sweets) he frivolously spent his money on.
Of course, he tried very quickly to manipulate the situation to convince me to put in the “missing” R70, but this is where parenting is important — these are the life lessons that will help him make good decisions later in life. He only gets R10 pocket money a week so it will take seven weeks just to get back to his previous financial position. He is learning the value of money and that a cheap toy was just not worth six weeks of pocket money.
Time will tell whether we learn our money habits or are just born with a money personality, but I hope he remembers this moment and that he keeps his promise to himself to save his money in future. It will put him in good stead for when he earns his first paycheque.
Read more news, blogs, tips and Q&As in our Smart Money section. Post questions on the site for independent and researched information