3 ways to raise financially smart kids

Teaching your kids about financial literacy is one of the most powerful lessons that will benefit them for a lifetime. Cultivating good money habits at an early age will help your kids understand the value of a dollar and realise the importance of being financially responsible. So, how do you begin inculcating financial literacy in your kid?

1.       Get your kids to save

Encourage them to save by getting a piggy bank. Give them some monetary rewards when they help you with simple household chores and share with them that the goal is to drop a portion of the dollars and coins regularly into the piggy bank until it is filled up.

2.       Bring your kids for grocery shopping

The next time you are going grocery shopping, bring your kids along and involve them in comparing prices across brands to snag the best deal. This is also the perfect time to discuss with them the difference between a need and a want if they are tempted to get all that sweet goodies.

3.       Give them the control over their pocket money

When your kids start entering primary school, give them some pocket money to make independent spending and budgeting decisions. Shower them with praise when they spend wisely and make an effort to save some of the allowance. 

Ensuring that you set a good example for your children is equally important too.

“As parents, we are role models for our children. If our children observe how we manage our money, they will find it easy to pick up good financial habits. Look out for learning opportunities in daily life – encourage our younger ones to keep a coin bank or older children to manage their weekly allowance or money they receive from special occasions such as festive occasions or birthdays. We can even encourage them to set aside a small sum to help the less fortunate,” said Mrs Sher-li Torrey, member of the Families for Life Council.

"This will help our children learn not just about saving money, but also important values such as caring for others in the community.”

Jumpstart your kids’ saving journey with GREAT Wealth Multiplier 3 by Great Eastern, a regular premium endowment insurance plan that you can purchase for them to plan for their financial future. With a potential growth of 8X or more¹ on the total premiums paid, your little ones will eventually thank you for the financial cushion you have built for them.

Mrs Sher-Li Torrey is a member of the Families for Life Council, which aims to rally like-minded groups of individuals and organisations to build strong and resilient families. Visit Families for Life website at www.ffl.familiesforlife.sg and Facebook page at www.facebook.com/familiesforlife.sg.

Footnote:

¹ Based on the illustrated cash value at the end of policy year 60, premium payment term of 5 years and an illustrated investment rate of return (IIRR) of the participating fund at 4.25% p.a.. Based on an IIRR at 3.00% p.a., the multiplied returns are up to 4.4X or more.

Potential returns are not guaranteed and are dependent on the premium payment term and policy year when the plan terminates. The actual benefits payable may vary according to the future performance of the participating fund.

Disclaimer:

Terms and conditions apply.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

The information presented is for general information only and does not have regard to the specific investment objectives, financial situation or particular needs of any particular person.

This policy is protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policy is automatic and no further action is required from you. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact us or visit the Life Insurance Association (LIA) or SDIC websites (www.lia.org.sg or www.sdic.org.sg). 

Information correct as at 8 September 2023.