Financial Education for Children - Teaching Money Management Skills

Isn't it an irony that we teach our children to readopen an account in the nearby bank and later a
and write but disregard the importance of a financialtarget monthly savings. Even if that little amount is
education for them? Isn't imparting and teachingjust ten cent per day, you will be surprise how
money management skills and knowledge to ourquickly their savings will grow. The children
children just as important for them to be ready tothemselves will be pleasantly surprised. Reward them
face the reality of the real world we live in?if they meet their monthly target. This way, good
Due to the ease of obtaining credit cards these days,saving habits can be inculcated into them early in life.
there are now more reports of youths in their2. Introduce them to the Monopoly and other cash
twenties and early thirties in position of debts thanflow games that are available in the market. These
ever before. It is due to such a scenario that it isgames are a good way to educate them on the
imperative that children of today are taught to bebasic principles of budgeting and the understanding of
financially literate with the right money managementincomes and expenditures for purchases.
skills.3. Encourage them to take up part time jobs during
The following steps could be taken to educate yourtheir school break to earn some income and extra
children on basic money management:-pocket money.
There are many books written to guide and assist
1. Start off by setting up a savings account for them.you on a financial education for your children but
Give them an allowance, an amount slightly moresince this subject is not a syllabus in the most school
than their daily estimated expenditure so that theycurriculum, it will be up to you to take the necessary
put into their piggy bank that little extra daily. Explaininitiatives in teaching the necessary money
to them that they should put aside say perhaps 10management skills to them to pave the way for
to 20% of the allowance given. Set them a target tothem to gain financial independence early in life.