This article was contributed by CompareHero.my.
Is there a right age to educate children about money? Child experts suggest it should be done as early as primary school. This is the time the child can grasp the idea of rewards and putting importance to something.
Aside from explaining the use of money in our daily living, it would also be in their best interest to start teaching them how to save money, and this can begin as soon as the child is five years old. Every parent wants his or her child to grow as an adult who knows how to make smart financial decisions, our advice? Start early!
Here are concrete steps you can do to gradually motivate your child to save a few RM:
- Explain to your child the various ways people earn money to spend on their needs. You can start by pointing out to your child the work or business you do, and also point out the various ways when you’re out together.
- Provide your child with a coin bank and describe some of the ways to save money. Show them that when coins are put into these piggy banks, it can total into something big which can be used to purchase something. Kids are usually visual, so seeing the money grow will help make the point clear.
- Explain to your child the significance of allocating money to different purposes using visuals or other materials like toys.
- When shopping with your kids, teach them the importance of checking the price tags and labels. Show them how much money will be spent when buying an item. You can explain to them that comparing products based on the quality and its prices can help save money.
- Let your child join you when you are collecting coupons from the newspapers or magazine. This can teach them ways to be practical when shopping for items.
- If you are purchasing an item online, invite your kid to sit with you and tell him or her the factors you consider when shopping.
- Teach them to become wise consumers by educating them to read the fine print on different products or by training them to have the initiative to read through the benefits a customer can get when buying a particular item.
- Let your child experience a day without spending money on anything. This will give them the outlook that an individual can enjoy the finer things in life without being dependent on material things. You can do gardening with your child or have a bit of outdoor fun in the park.
- You can test how your child manages his or her budget by giving him or her pocket money during a day out. Instill to them the notion that money is a finite concept which can be gained or lost. At the end of the day, let your kids discuss how he or she spent this sum of money.
- If you are thinking of ways on how to save money for your children’s future, you can open a savings account under your child’s name. You can explain the purpose of this to your child so he or she can contribute to this account.
It doesn’t have to be overly serious, make it fun too! You can also create a chart of the amount of money saved every week. This will encourage your child to consistently set aside a few coins for saving and every week, when the saving target is met, it is exciting!
Remember, the best way to educate children about the importance of saving money is to be a good example to them. You are their role models, so your children are likely to follow the example they see in their own home. You could also set up your own coin bank and let your child see where your spare change in your pocket goes to.
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