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When To Teach My Child About Money?

Teaching our kids about money matters is one of the most important skill that they need to learn while they are young.

The younger they have the concept about money, the better it is for the child and the parents.

We might think that they are too young to understand how money works but it is when they are still an empty vessel that we can have an easier time filling them with the correct financial mindset.

Too often I will see kids screaming/shouting/crying on the streets because they are unable to get toys or treats that they set their eyes on.

By the acts of screaming/shouting/crying, more often than not, they are able to get stuff(s) they wanted. They will continue to do so as they grow up and the parents will have a tough time to teach by then.

In this era, the kids are having too much of everything: toys, food, games, TV time. Healthy for them?

This could be one of the way to teach:

A week ago, I read in the TODAY newspaper about a man teaching his 10-year-old son the importance of saving. He bought his son three coin banks. They are designated for “Charity”, “Saving” and “Spending” respectively. 10 per cent of his son’s pocket allowance goes into the Charity coin bank, 30 per cent goes into Saving and the remainder goes into Spending.

via Source

I think it is important not to let our kids have the idea that money fall from the sky, and those coins and dollars can come by easily.

From young, I have a habit of saving up my allowances that my parents gave because I know how hard my parents had to work. They always bring me to their workplace since I am a really small boy. But their workplace is my playground :p no complaints.

Unlike the children these days, I had no fancy handphones, no fancy clothes, no fancy games.

SS says it too well:

But I know he is watching me and my every move. He will grow up to take on the same money beliefs as I have. So I need to set a positive example – to be careful with money, to be frugal and to prioritise spending appropriately.

via Source

Kids like to model after adults, we can only teach them the right things by setting a positive example.

It’s still to early for me to think about this as my boy is not born yet, LOL. But I know this post will remind me again when my boy comes of age.

Cheers!