Train Up a Child: How To Keep Your Child From Growing Up Into a Financial Wreck
Whether you are religious or not, it is a fact that the way you bring up a child is quite certainly the way that he or she will turn out. This basically applies to their character and this will influence how they treat people and how they live their lives and for the purposes of this article, how they manage their money.
And as with anything important, you need to start teaching them early; as soon as they have a simple understanding of things. That way, it will become like second nature to have good financial sense.
The first thing you need to teach them is to have a healthy appreciation for what money is worth in Singapore. You should not be stingy in giving them money or gifts but you should not be excessive either because they might grow up thinking money grows on trees.
Set a reasonable amount for their allowance and do not add any more if they run out, especially without a good reason. You could also have them do small tasks that you could pay them for so they can appreciate the cost of getting the money they want and the value of work, like working at a coffee shop nearby your HDB flat.
The next thing you should teach them is how to manage whatever money they receive. Particular emphasis should be laid on saving so you could get them a piggy bank or open an account for them to save up towards something they would like. You could make saving like a challenge when they get older with rewards for having reached their intended target. This will give them a sense of responsibility while inculcating a culture of saving in them early on in life.
You can also get them financial role models that are rather young that they can look up to. Kids are impressionable and they tend to follow people they can identify with. So if they have their favorite movie stars and singers that they want to be like, why not expose them to some young people that are making big bucks on their own. That should certainly get their attention and inspire them to know that they can also achieve what these young people have managed to achieve.
While you are doing all this, be consistent. Don’t spoil them with a lot of money and gifts one day and then withhold them the next day. Children thrive in structure and character is built through discipline. Stick with this and your children will thank you-eventually.