Be a money smart child

It’s only natural that parents always want the best for their children. But love and care are just as important as instilling prudence and gratitude into the little minds. As an old Chinese saying goes, success lies in hard work and prudence. Here are five useful tips to teach your kid about appreciation and treasure what they have. Of course, you can be a role model too.

Money does not grow on trees. Help your child understand that you work hard to make money to support the family and hence we should spend prudently.

Young children should be encouraged to split their allowance or red packet money into three parts to learn the concepts of “Save”, “Spend” and “Share”. Help your child to understand that saving should come before spending. After setting aside some money for savings, work out with your children the necessary expenditures and let them buy what they need according to their budget. Also encourage your child to put aside some pocket money for donations.

Use this opportunity to track household expenses with your child to teach them budgeting.. Help your child to understand the difference between “wants” and “needs”, and decide which item can be cut back. That way, he/she can learn to spend within his/her means, and does not overspend.

Let your child know that there are people out there living in wars, hunger and poverty, and we should offer them a helping hand however we can. As you encourage your child to take part in a good cause, teach them not to take everything for granted and to cherish what they have.

The way you spend and save shapes your child's attitude towards money. Be a good saver and stay away from impulse buyings, and the little ones will likely follow suit.

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Teaching children to "Divide Money Into Three Parts"

Encourage children to keep tracking of income and expenses

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