Point of view: how to introduce financial literacy to children during the holidays

The holiday season is a time for family, friends, sunshine, and outdoor time, and the urge and opportunity to do as little as possible. In short, it’s a much‑needed break from the daily grind. But it’s also the perfect moment to start having conversations with your children and loved ones about money.

Nasia Seyuba, head of people at Finchoice, explains that introducing kids to healthy financial habits early sets them up for a lifetime of good money management: “Children learn about money in two ways. Firstly, by watching how their parents handle everyday finances, and then through intentional teaching. The holiday season is ideal for both.”

She says parents don’t need to dive straight into adult‑level financial discussions. Instead, focus on practical, age‑appropriate lessons. For younger children, having R100 to spend teaches them about ‘wants’ versus ‘needs’, budgeting, and calculating change. For older children, conversations can include the basics of saving, the importance of insurance, and how planning ahead for expenses makes life less stressful.

Practical planning doesn’t have to be dull. Families can work together on a budget for holiday fun that covers gifts, meals, activities, and travel, while also anticipating January’s back‑to‑school expenses. Seyuba also suggests involving children in the actual shopping: “Taking them along when you buy their school shoes, or when you stock up for a special meal, and letting them compare prices or choose between options, teaches them prioritisation and planning in a fun, hands‑on way.”

Digital tools provide additional ways to teach. Children can check balances, track transactions, or manage small amounts on prepaid cards, banking, or fintech apps. Seyuba emphasises transparency: “Show them how fees, interest, and spending limits work. Learning to manage digital money safely is as important as understanding cash. In fact, it’s a survival skill for the modern world.”

Seyuba notes that these discussions are best kept calm and clear. “It’s about introducing concepts gradually, in ways that children can understand and apply, not about scaring them with realities like the cost of retirement".

While Seyuba warns against burdening children with your family’s full financial picture, she says that December is a good opportunity to review your longer‑term financial safeguards. Do your medical aid, funeral, and life insurance policies still suit your needs? Do you have an up‑to‑date, valid will with clear instructions for guardianship of minor children? Does your short‑term insurance adequately cover all your assets? Once all these moving parts are in place, share the details and documents with trusted family members or friends, so that they know what your wishes are in the event of your death.

I was reminded of this recently when my daughter and niece joined me on a quick trip to the shops. I gave them R100 each and asked them to choose between something they wanted and something they needed for school. After much deliberation, they chose a nail kit. Watching their excitement was a reminder that, for children, wants often feel more urgent than needs. It gave me the perfect opportunity to talk to them about budgeting, trade‑offs, and how every choice has consequences. That small moment showed me how everyday experiences can become powerful teaching tools. By letting children make their own decisions, even if they lean towards “wants”, parents can guide them gently towards understanding priorities, without turning it into a lecture.

Seyuba stresses that children are always observing. “Financial literacy isn’t just what you tell them. It’s also what you model. How you budget, make choices about spending, and respond to financial challenges shows them what responsible behaviour looks like. Kids who see and hear their parents planning and prioritising calmly are far more likely to adopt these habits themselves".

By taking advantage of the holiday season to talk about money, parents can combine celebration with preparation, instilling skills and confidence that will last their children a lifetime. “Children can observe how adults plan responsibly, which is often more powerful than formal lessons. It demystifies money, while showing them how to handle it responsibly in real life,” says Seyuba.

* Maleke is the editor of Personal Finance.

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