5 ways to raise a fi­nan­cially pru­dent child

Young Parents (Singapore) - - RECIPES -

TEACH THEM TO BE GRATE­FUL FOR WHAT

THEY HAVE If there is no gratitude, they will never be happy no mat­ter how much they have, be­cause they will al­ways want some­thing else or some­thing more, says Keon Chee, co-au­thor of Bring­ing Up Money Smart Kids.

Dis­cuss the im­por­tance of mak­ing full use of the toys, books, games, gad­gets and clothes that they own, and en­cour­age them to share these items with their sib­lings. MAKE THEM AWARE OF THE VALUE OF MONEY “Ex­plain the con­cept of money to them – how it was earned, the en­ergy that went into earn­ing it, and its po­ten­tial and value,” ad­vises Lee Cheon Loon of Ex­ec­u­tive Coach In­ter­na­tional.

“If you want to re­ward your kids with ma­te­rial goods, en­sure that the re­ward is de­served. They must un­der­stand that they have to earn it and that it won’t just be given to them.

“This en­tails telling your kids what you ex­pect of them in or­der for them to get that re­ward. But you will have to be strict about this – mean­ing that you can­not give in to your kids if they don’t hit the mark – oth­er­wise you will erode the value of the ‘prize’.

“An­other tip is to look for ways to re­ward your chil­dren that go be­yond money or ma­te­rial things.”

DIS­TIN­GUISH NEEDS FROM

WANTS Jasveer Malaney, a cer­ti­fied money coach at Ac­quire Coach­ing, says that it’s also im­por­tant to help your chil­dren make smart con­sumer choices from a young age.

It doesn’t have to be com­pli­cated. You can achieve this eas­ily dur­ing a trip to the su­per­mar­ket, for in­stance. This is also a good op­por­tu­nity to teach them about bud­get­ing.

“Do be open with your kids about money as well,” Jasveer adds. “If you picked up a deal, tell them about it. And as they grow older, you may want to have con­ver­sa­tions with them about the econ­omy, CPF sav­ings, in­vest­ments, shares, and so on.”

EN­COUR­AGE THE SAV­ING

HABIT Help­ing them un­der­stand the value of money ex­tends to teach­ing them how to save, too. In ad­di­tion to their bank ac­counts, get them money banks in which they can save their pocket money.

Teach them how to read their pass­books and how to use an ATM ma­chine. Such ba­sic lessons can go a long way in help­ing your chil­dren bet­ter ap­pre­ci­ate their money so that they don’t end up spend­ing it on friv­o­lous items.

BE A GOOD MONEY

ROLE MODEL Above all, teach your chil­dren – by ex­am­ple – that suc­cess is not tied to ma­te­rial things and that long-term hap­pi­ness is not to be found in a shop­ping spree.

Says Keon: “How much you have is but one mea­sure of suc­cess, and it’s cer­tainly not the most im­por­tant.

“Af­ter all, Adam and I have met many wealthy folks who are not happy and have poor fam­ily lives.

“To us, hap­pi­ness is the greatest mea­sure of suc­cess, and kids should know that they can achieve this hap­pi­ness, by be­ing pos­i­tive about their lives, find­ing their tal­ents and strengths and look­ing for op­por­tu­ni­ties to use them. Fi­nally, (hap­pi­ness comes from) find­ing mean­ing in help­ing oth­ers around them.”

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