| In today's fast-paced and changing world, every parent | | | | Talk to your children about how much things cost, and |
| wants to help their children become successful adults. | | | | how long it will take for you to save for those items. |
| Financial literacy is a life skill and teaching children about | | | | When your family sets goals, include everyone in the |
| the proper use of money should start early. So when | | | | discussion. Give your children challenges and suggest |
| do we teach the fundamentals of finance to our | | | | they only have a certain amount to spend. They will |
| children? From a very young age, children can learn | | | | realise they can't buy everything they want. Amplify |
| many things from their parents, including the way you | | | | this lesson during a vacation. Set a budget and let your |
| deal with your finances. Here are some ideas to help | | | | children decide whether they want to stay in a posh |
| you focus on personal financial education with your | | | | hotel or participate in a unique activity while travelling. |
| child at home. | | | | Keep records of the holiday expenses and let them |
| 1. Money doesn't simply appear | | | | see the total cost of the trip, the cost of food and |
| Time is money and money is time. Something has to | | | | accommodation. By learning about the choices they |
| be traded for it. As working parents, we sacrifice our | | | | have to make with their money, they will begin to see |
| time for the money we earn. Teenagers will begin to | | | | priorities and not over buy. |
| grasp the relationship between time and money but | | | | 4. Have fun, play The Game of Life or Cashflow for |
| with younger children, you can start by asking them to | | | | Kids board games |
| do simple chores around the house. Pay them for their | | | | Teach your children about more complex concepts like |
| labour and reward bonuses for their level of | | | | compound interest and proper cash flow management, |
| performance. They will learn the difference between | | | | understanding the basics of investing in stocks and |
| doing job and doing it well. The earlier your children | | | | shares, real estate and other businesses. As your |
| realise that precious time given up for money is gone | | | | children become familiar with these subjects, have |
| forever, the better prepared they will be when they | | | | discussions with them about the activities they are |
| get their first job and spend their income accordingly. | | | | interested in and turn these activities into a business or |
| 2. Lead by example | | | | a career ambition. This encourages marketable skills |
| Let your children see you dealing well with money. | | | | and motivates your children towards working extra |
| Explain the difference between needs, wants and | | | | hours on gaining those skills. Enrichment courses such |
| desire. Help your children understand the value of | | | | as speech and drama, arts and craft, creative writing |
| things. If they hear you lauding the merits of | | | | and many others will help your children develop their |
| consumerism, they'll get the message that labels are | | | | confidence in speaking, writing and communicating, all |
| important. Teach them about good consumer habits. | | | | of which are essential for their future. The more your |
| At the supermarket, make them compare prices. | | | | children play, the higher their financial IQ will become. |
| What is the best buy? is it value for money? Did you | | | | A family's attitude towards money has a powerful |
| know that the most expensive items at the store are | | | | influence on a child from a very early age. Teaching |
| usually at eye level? This is the best way to | | | | our children about the proper use of money will help |
| encourage them to save and spend wisely. Let them | | | | them develop their money skills, be more responsible |
| see that money doesn't grow on trees and there is a | | | | and disciplined. Education is the key to developing |
| limit until you have worked to earn more. | | | | healthy money habits in your people. You can never |
| 3. Be as open as possible about money at home | | | | start teaching them too early. |