Money lessons are often hard to integrate into your child’s life when they are occupied with school and homework. Thus, school holiday is the perfect time for your children to take a break and focus on other aspects of their life skills. Why don’t take this chance to guide them on how to manage their money like a grown-up?
You can always engage your child in the practice of budgeting despite his or her age. You can either offer a token of money as a reward to your child for helping with the household chores or allow your child to work for someone. The first paycheck is always a means of freedom for your child. Setting a precedent for life, this paycheck is significant as it affects how your child would view money budgeting in time to come.
Set a Good Example
You can demonstrate financial responsibility by involving all your immediate family members in money management activities. There is no limit to age and it is better to expose your child to the operations of the family as soon as possible. Start by reviewing the family budget together and let your child be aware of the monthly household bills. This will help your child to understand the ideas of wastage, conservation and recycling from young.
Budgeting 101: Saving and Spending
Introduce your child to the 3 essential concepts in a budget: Essential Purchases, Savings and Discretionary Spending.
If your child is under the age of 18 and living with you, he or she may not have the immediate need to budget for the essential purchase. However, it is good for your child to consider giving a small contribution towards your monthly household bills. Besides this, you can also discuss with your child if the paycheck can cover some essential items in his or her life such as telephone bills and school lunches.
Savings is a crucial lesson that everyone should learn. Set a savings goal with your child when he or she first receives an amount of money, whether if it is an allowance or a paycheck. It is common that your child would have a financial goal that is tied to discretionary spending. Instead of discouraging your child from such purchase, guide your child to develop a savings plan towards this goal. This will definitely motivate your child to be involved in the planning and act on it.
Shopping is a favourite pastime for everyone. Yet, many do not know how to shop in a savvy manner. One simple way to start is to encourage your kid to compare prices across brands and shops. Show your child how to save money on your generic brand purchase or bargains from thrift stores. If your child tends to overspend on frivolous things, it is also good to have him or her create an expense log. Through this exercise, your child would be able to understand where the money is going and decide the importance of each purchase.
Holidays can be a fulfilling experience for both you and your child. Just a quick 10 to 20 minutes of money savvy interaction each day can impact your child’s life. It is never too late to start today!
Joanne graduated from New York University with a Masters of Science in Media, Culture and Communication. Her area of focus was on media perception of women and she had presented her findings in several conferences. Additionally, she has also founded and presided over the Media, Culture and Communication MA Student Association for her department.
Joanne has a strong focus in Communications and Corporate Education. Previously, she has worked in UBS AG as a L&D specialist as well as volunteered her time with several women organizations in Singapore. Her last position as a Digital Marketing Analyst in New York City, USA has provided her with the skill set that enables her to become part of TNS team.
In her free time, Joanne enjoys learning and travelling, making a point to expand her horizons at least once each year. She also enjoys food tasting and community services.