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

Simply Her (Singapore) - - Kids -

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.

Newspapers in English

Newspapers from Singapore

© PressReader. All rights reserved.