Global Money Week 2025 is a fantastic opportunity to reflect on the importance of financial literacy, not just for adults but for children too! At Edike (www.edike.africa), we understand that financial well-being starts early. That’s why we’re highlighting the common financial mistakes children make and why you, as a parent, play a crucial role in guiding them towards sound money habits.

Common Financial Pitfalls for Kids:

Children, in their innocence, often stumble upon financial mistakes that can have lasting implications. Here are some of the most common:

• Immediate Gratification: Spending every penny they receive without saving a dime.
• Lack of Understanding of Money’s Value: Not grasping the connection between work and income.
• Zero Savings Goals: Failing to set targets for what they want to achieve with their money.
• Confusing Needs and Wants: Prioritizing toys and treats over essential items.
• Borrowing Without Repayment Plans: Damaging relationships by not understanding debt.
• Ignoring the Importance of Giving: Not learning to share and contribute to others.

Why Parents Must Step In:

Children aren’t born with financial wisdom; they learn it from their environment. Parents are their primary role models and educators in this regard. Here’s why your involvement is important:

• Lifelong Money Skills: Early financial education builds a foundation for responsible money management. By allowing children to make small, controlled
• financial mistakes early, parents can guide them through the learning process in a safe environment.
• Preventing Future Debt: Teaching children to save and budget reduces the likelihood of them accumulating debt as adults.
• Developing Critical Thinking: Financial decisions require comparing options and consequences, improving valuable critical thinking skills.
• Promoting Financial Independence: Children who understand money are more likely to become financially independent and secure.
• Instilling Values: Teaching children about giving and sharing cultivates empathy and social responsibility.
• Aligning with Schooling: By promoting financial literacy at home, parents are complementing the education their children receive at school.

What Can You Do?

Children learn more by what they see those around them do. So to help your children learn
more about money and their finances, parents must themselves be more aware and lead by
example. Here are some other tips:

• Involve Your Children in Financial Decisions: Let them help with creating the grocery lists, use the scale of preference, and participate in family budgeting and shopping trips. By doing this, they understand the difference between needs and wants—what is essential and what is not.
• Encourage Savings Goals: Help children set realistic savings targets and track their progress. To better understand the value of money and saving, introduce allowance and chores, which help connect earning money with work and responsibility.
• Practice Giving and Sharing: Turn everyday situations into opportunities for financial learning. Show them how to give and share, from which they can learn the importance of contributing to charitable causes.
• Utilize Educational Resources: Financial education does not have to be boring.
• Explore age-appropriate books, games, communities, and apps that teach financial concepts.

At Edike, we understand, as a school fees financing solution, that raising children is a deeply rewarding experience, but it also comes with financial considerations. Ensuring a secure educational future for your child, from primary school to university, is a top priority for most parents. While the prospect can feel overwhelming, with the right approach, it’s entirely achievable. We believe parents can confidently plan for their children’s educational journey and beyond.

To help you navigate this, we’ve outlined key steps inspired by expert financial
guidance:

• Start Early, Start Now: The sooner you begin planning for your child’s education, the better. Assess your current financial situation and strategise how to grow your savings. If you’re uncertain, seek advice from a financial advisor who can provide personalised guidance tailored to your family’s needs. Our team is available to advise so shoot us a mail info@admin
• Define Your Educational Goals: Clearly outline your financial aspirations for your child’s education. Are you aiming for private primary schooling, university abroad, or specialized training? Define your target schools and get an estimate of fees. This will inform your savings strategy and help you determine how much financing you might need.
• Explore Education-Focused Investment Options: Recognize that traditional savings may not keep pace with rising education costs. Explore investment options designed for education, such as education savings plans, or consider low-risk investments like real estate to diversify your portfolio. Remember that Edike is here to help bridge the gap when needed, providing flexible financing solutions.
• Involve Your Child (Age Appropriately): As your child grows, include them in age-appropriate discussions about financial planning and the value of education. Teach them about budgeting and saving, connecting it to their educational aspirations. Lead by example by demonstrating responsible financial behavior

Starting your financial planning early, particularly for education, is crucial. Every contribution made today significantly impacts your child’s future opportunities. We believe that education extends beyond the classroom. By empowering children with financial literacy, parents are investing in their future well-being. As a school fees financing solution, we are committed to supporting parents in providing quality education, allowing them to focus on nurturing their children’s overall development.
This Global Money Week, let’s pledge to equip our children with the financial tools they need to thrive. Together, we can build a generation of financially responsible and empowered individuals.