When's the right age to start teaching your kids the value of money? Read on to check out these 5 important money lessons...
There is so much going on for Singaporean children – tuition classes, enrichment classes like swimming, piano, speech & drama, art, dance… the list is endless.
Besides trying to unleash your child’s full academic potential and discovering the genius in him/her, is there something important we are missing? How about your child’s mindset, habits and knowledge about money? Is it ever too young to start learning such an important life skill?
Apparently not – habits are best cultivated from a tender age. If you wish for them to be financially independent in their adult lives, stay clear from debt, be able to afford a roof over their heads, and even contribute towards your retirement, this is one skillset which parents would do good to build in their children early in life.According to Warren Buffet, ‘Teaching kids sound financial habits at an early age gives all kids the opportunity to be successful when they are an adult’.
So, what do you teach them and where do you start?
1. An Appreciation for the Value of Money
As much as you want to provide the best for your children, they should not grow up with the idea that money is easily gotten or inexhaustible. Do not spoil them by giving them extra when they have run out of their pocket money by mid-week or buy everything they want to make up for your lack of time spent with them.
In this day and age, where some kids think that chicken originates from NTUC, it will do them good to realise that money does not drop from the sky. Paying them a token sum for holiday jobs like car washing, or cleaning up the house will ingrain in them the lesson that money is earned, and hence should handled prudently, not squandered.