Keeping up with the Joneses, the Kardashians, or whomever, used to be something only grown-ups were worried about.
Increasingly children however also feel the pressure to live up to their peers, one-upping them with possessions.
We all can’t have the same amount of expensive clothes, the latest smart phones, or whatever products are trending at the moment.
Income inequality has been on the rise over the past couple of years in South Africa.
It has become a normal sight to see little shanties next to affluent neighbourhoods in each corner of the country.
Many adults can remember how important it was to fit in at school and how much it affected one’s self-esteem when you did not have the things other children had.
One of the mistakes parents make is that they don’t talk to their kids about money, says Elisabeth Donati, an award-winning financial educator and owner of Creative Wealth International.
Donati says talking about money and how to use it can help a child from developing unhealthy habits.
So, when your child asks for things his peers have, have a frank discussion about why they want the same things as their peers have.
Show your child how money is earned and spent in the household, rather than simply telling them regularly, “no, we can’t afford that”.
She says you can involve your kids when you pay the bills and how to keep track of what you’ve paid.
Donati says the key is shaping kids’ thought patterns to reflect a healthy view of money.
You can empower yourself and your kids by teaching them to set goals.
