Would you like your
child to be smart when it comes to money? Therefore, we must teach children
while they are young.
The earlier you start, say age 3
to 4, better they learn. Start by showing them how to identify different
coins. Then give them a coin bank where they can keep these coins. As it
fills-up, they can hear, feel and see how their money multiplies.
Give regular allowances. Make them experience
real-life money matters. Receiving regular allowances will train your kids to
set goals, save money and spend responsibly.
Establish a savings habit. Train our children to save a percentage
of their income, whether it comes from their weekly allowance or it’s
birthday money from relatives. Experts suggest saving at least 10% of one’s
earnings.
Open your child’s
first savings account. We learn by doing. Having a savings account can teach
your children good saving and financial planning habits. This will encourage
them to save regularly no matter how small the amount is. It will also show
your kids how their money through compounded interest. Plus, saving money in a
savings account (just like Mom & Dad) also promotes a feeling of self worth.
Discuss budgeting. Make your kids conscious of their spending habits.
Ask them to write down what they plan to buy during the week. Then compare this
with their weekly income. Train them to spend less than what they earn.
Show your kids the effect of inflation. It’s a fact
that prices have gone up through the years. Share your own personal experiences
with your children. Be specific in telling how the prices of different
commodities have gone up over the years.
Set a good example. Manage your income well. Your kids will learn from you.
