We have three beautiful daughters, aged nine, six, and one. Some time ago, we decided to start paying them a monthly allowance. Initially, we gave them small amounts of cash to put in their wooden savings boxes at home. However, we have since opened unit trust accounts for each of them and now deposit the money directly into these accounts.
Our eldest daughter, who has access to a dedicated smartphone, tracks the investments using an app linked to the investment accounts. The girls are free to use the money as they please. Currently, we give each of them about ugx 100k ($30) per month and these amounts will increase as they grow older. These amounts may appear too small but quickly add up when compounded over a lifetime.
There are no strings attached to receiving this allowance, though we encourage them to do well in school, behave properly, and help with house chores.
We want our daughters to be exposed to money early on because they are set to inherit a substantial amount of wealth in the future. We’ve seen how some children squander family estates upon inheritance, and we want to prevent that. We believe the best asset you can give your children is a good education, which includes financial literacy. The only way to learn how to manage money is to actually handle it. And being girls we want them to get used to money so they won’t be easily lured into compromising situations because of someone showing them a little cash!
By giving our daughters a monthly allowance and guiding them through their financial decisions, we’re not just handing them money; we’re equipping them with essential life skills. This early exposure to managing funds teaches them the value of money, the importance of saving, investing, and the consequences of spending. Hopefully as they grow, they’ll carry these lessons with them, becoming responsible and financially savvy adults.
We believe that this hands-on experience, combined with our ongoing coaching and support, is the best way to prepare them for the future, ensuring they can handle whatever wealth and responsibilities which come their way. In essence, we’re investing in their independence and success, laying a strong foundation for them to build prosperous and mindful lives.
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