Raising Money savvy Kids.
By Swarna Kalyaan
Managing Money is one of the main Life skills all of us need and surprisingly it’s never taught in school. Most of us have self taught ourselves on how to manage money. Some of us have learnt it well, some are still struggling. It is also has connection to our mindset, our upbringing, our society.
In 2007, when I started my Financial Literacy workshops, I decided to start with children as I realized that learning something correctly first is better than trying to unlearn as an adult.
As parents, we always wonder, when do you start teaching your kids about money?
It can be as early as 3-4 years old, when your child realizes that a piece of paper that is exchanged for their favourite toys or games or food.
Here is the “ABCs of Money sense for children”. Need, Want, Save and Spend and Value.
Spending time explaining the difference between a NEED and a WANT is one of the best lessons we can teach our children. Every time you find your child asking for something you think is not required, these magic words will help you sort it out without any hassle. This lesson will go a long way in handling money or also how we associate money in our lives. You can even engage your child to draw and colour things they think they need and want. I normally do a session of vision cloud with the children in the workshop. They draw out what they need and want. For older kids I ask them to categorise according to when they need or want it.
Once the Need and Want is understood, save, spend and value is easy to talk about. You can go with your child to the supermarket, check out the different brands and see the price difference. I used to play “I am a price Spy” with my 5 year old daughter, whenever we went shopping. She would look at the price, look for something similar and compare the price. Then we would discuss words like save, spend and value.
It’s never early to talk about money to your children and hope you found these tips useful.
About the Author
Swarna Kalyaan, is a trainer and an Independent financial Advisor. She has been providing financial services in Singapore for the past 13 years. She has conducted customised workshops for children, teens and women on Money sense at schools and community centres. She has developed a training module called “IM MoneyMagnet” integrating money sense with mindset.
Contact details: Tel: +65-90251126 Email: firstname.lastname@example.org
The pictures in the article are taken from http://www.Tes.org