Children must be taught
HOW TO THINK,
not
WHAT TO THINK.
Margaret Mead
Monday, 5 January 2015
IS YOUR CHILD MONEY SMART?
IS YOUR CHILD MONEY SMART?
"Save your money and your money will save you" - Jamaican
proverb.
You can develop your child's understanding of money and finance so
that they are money smart throughout their lives.
Explain to young children how we use money to buy things and how it
can be earned. Let children know that things cost money, sometimes a little and
sometimes a lot, so that when you buy something you have to consider this.
Involving your child with the shopping encourages them to compare prices. Consider bargains and discuss your reasoning
behind the choices you make. If your
child enjoys playing shop, up cycle empty food packets for them to price, sell
and even create special offers.
Explain how banks work and how credit cards are a different way of
spending. At the same time discuss how
banks may offer you a loan for buying very expensive things such as a house and
how you have to pay them interest. Help
them to understand that a taking out a loan has to be a very deliberate and
considered choice.
You may decide to give your child pocket money, which they could
earn through completing chores at home.
Help your child research and compare prices on the items that they are
saving for. Another activity could be to
plan a party (real or imaginary) or a day out with a given budget. For this you can research and make informed
decisions together.
The following strategy may also support your child to be money smart
and make good
choices with their money:
Don't let your money melt away - SPLIT IT!
Save
Prioritise
Live within your means
Impulse buying is bad
Track
Whilst helping children to understand that money does "make the
world go round" it is also important to develop their responsibility for managing their money sensibly. "Do not educate your child to be
rich. Educate him to be happy so when he
grows up he'll know the value of things, not the price." Anon.
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