Teaching your kid about financial literacy is one of the most powerful lessons that will benefit him for a lifetime. Cultivating good money habits at an early age will help your kid 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 kid to save
Encourage him to save by getting a piggy bank. Give him some monetary rewards when he helps you with simple household chores and share with him 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 kid grocery shopping
The next time you are going grocery shopping, bring your kid along and involve him in comparing prices across brands to snag the best deal. This is also the perfect time to discuss with him the difference between a need and a want if he is tempted to get all that sweet goodies.
3. Give him control over his pocket money
When your kid starts entering primary school, give him some pocket money to make independent spending and budgeting decisions. Shower him with praise when he spends wisely and makes 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 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 10X or more on the total annual 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.familiesforlife.sg and Facebook page at www.facebook.com/familiesforlife.sg.
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