When we ask a child what their aspirations are, they usually say things like “I want to be a doctor”, “I want to be a pilot”, “I want to travel the world” or “I want to save the whales”. However, dreams come at a cost, and if dreams cost money, then why are we teaching our children to live within their means instead of encouraging them to chase their dreams? The key to achieving financial freedom is financial education! From the age of three, children begin to develop the cognitive skills needed to understand fundamental financial concepts, such as recognising coins, calculating change and associating small sums of money with the things they want to buy at the corner shop every Friday.
Here are a few simple ways to teach your children the value of money and the importance of saving.

Saving for big things
Nowadays, it is common for children to want the latest, most sophisticated and fashionable gadgets, toys or clothes. As a result, it is the parents who foot the bill. However, parents can change this pattern of giving presents and start giving pocket money. One effective way of doing this is to teach your eight-year-old to save for the important things that interest them. This approach helps them understand the importance of delaying gratification. The best way to encourage them to develop saving habits is to talk to them to understand their wishes and the reasons behind their choices. Once you have this information, you can encourage them to save from their own pocket money, which will help them appreciate the value of saving and its underlying principles.

Writing down the goal of saving money for a specific item can make it more concrete and achievable for parents and children alike. Recording weekly savings lets children see their progress towards the goal. To make the task more interesting, parents can add 50 meticais for every 250 meticais saved until the goal is reached. However, it is essential to take into account the timeframe of the goal. Young children have a shorter patience clock than older children, so 3-6 weeks is recommended for children under 7, while children over 8 may need 3 to 6 months to reach their savings goals.

Having a budget
Everyone has a thing, a place or a person that leads them to make bad decisions about spending money. This applies to children too. The canteen, the school stationery shop and friends are the main reasons why children repeatedly ask for money to spend every week. It is essential to make your twelve-year-old realise how recklessly they spend, every weekend for example, because of the pressure to keep up with friends, as this can affect their future spending habits.
Setting a budget for the canteen, the stationery shop and weekend activities can help them change their spending patterns for the better. Knowing that they have to spend their money sensibly, and that it has to last the whole month, encourages them to think more smartly about where, when and how much they should pay. They will eventually live on a tight budget and have to cut back on spending. This is where they will learn the real value of money and the ability to balance it with their wants and needs in life.

It is important that you make conscious financial choices in front of your children, as this helps them understand the value of money and its responsible handling. By setting a good example, you can influence your children to save money to enjoy life's luxuries, but also to be prepared for difficult financial situations in the future. In this way, you can give them a solid foundation for leading a financially healthy life.

Although there are no specific studies for Mozambique, it is safe to assume that the financial situation is similar to that of South Africa. It is startling that 70% of the South African population earning an income is currently struggling with over-indebtedness. It is important to note that people who are trapped in a cycle of debt often face significant difficulties in meeting their monthly expenses. This problem is caused mainly by a lack of financial education, together with the development of harmful financial habits and behaviours.

Empowering young people with financial education can make a difference. By equipping them with the knowledge, skills and confidence to manage their finances, we are enabling them to take control of their future and build a more secure life for themselves and their loved ones.