Every now and again, get your kids to review how far they’ve come with regard to their savings. Show very young ones how heavy their piggy bank has become. If they are older, look through their passbook with them to see how their savings have grown. If th
TEACH MONEY APPRECIATION INTRODUCE OLDER KIDS TO BANK CARDS DISCUSS RISK AND INVESTMENTS
Once your kids show that they can manage money and save for short- and longterm goals, consider giving them a debit card linked to their savings account. Teach them how the card works and explain that it can be used for local, international and online transactions. When you’re out together, ask them to use their card in front of you so you’re sure that they know how to do so. Explain what will happen if they use the card irresponsibly.
Having a debit card teaches older kids how to stretch their money through cash rebates and cardholder benefits like dining or retail discounts.
Invest on your kids’ behalf when they’re little. When they’re older, use the investment to demonstrate how money “grows” over time and explain how this money will keep growing to fund a specific goal – for example, their tertiary education.
Highlight to older kids the importance of a diversified portfolio. Tell them why putting all your money into one account may not yield the best results, and why some risk is essential to get a higher rate of returns. At the same time, help them understand the downsides of greed and uninformed investing.