Isn't it an irony that we teach our children to read and write but overlook the importance of financial education for them? Not convey and teach money management skills and knowledge to our children is as important for them to be ready to face the reality of the real world we live in?
Because of the ease of obtaining a credit card these days, there are now more reports of young men in their twenties and early thirties debt position than before. This is because the scenario is such that it is very important that children today are taught to become financially literate with proper money management skills.
The following steps can be taken to educate your children on basic money management:-
Start by setting up a savings account for them. Give them pocket money, the amount of which is slightly more than the estimated expenditure on them daily so they put into their piggy bank that bit extra every day. Explain to them that they should put aside says maybe 10 to 20% of the allowance granted. They Set a target to open an account at a bank nearby and then a monthly savings target. Even if a little amount of only ten cents per day, you will be surprised how quickly those savings will grow. The child itself would be surprised. Reward them if they meet their monthly target. In this way, good saving habits can be inculcated into their early lives.
Introduce them to the game of monopoly and other cash flows that are available in the market. This game is a good way to educate them about basic budgeting principles and understanding of revenue and expenditure for the purchase.
Encourage them to take a part-time job during their school holidays to earn additional income and pocket money.
There are lots of books written to guide and assist you on financial education for your kids, but as this was not part of the syllabus in the school curriculum, it will be up to you to take the necessary initiatives in teaching money management skills necessary for them to pave the way for them to gain financial independence from the beginning of life.