When it comes to teaching young children about the world, parents may feel that some topics – like politics and religion – are too tough to broach. Money is another. Parents may not feel like they know how to approach the subject, or worry that they don’t set a good financial example for their kids.
But money talk shouldn’t be avoided. Talking about it is the first stepping stone towards financial knowledge and, ultimately, to financial independence. Holding off the conversations for too long can leave your children in the lurch later in life. For instance, in South Africa, only 42% of adults are financially literate. In Ghana the figure is 32% and in Nigeria it’s 26%. This means a large number of adults in these countries do not know or understand financial concepts.
