Instilling the Value of Money in Children

(Let your child know about the hardship faced by underpriviledged children in other places)

IN Troy Dunn’s book entitled Young Bucks How To Raise A Future Millionaire, one of the many recommendations was to encourage and nurture entrepreneurial thinking among children. 

Dunn suggested that the best way to teach your child is to stop giving her an allowance, which he said is one of the most wrongful concepts that has ever been sold to well-meaning parents.

“Allowances are a terrible disservice to your child, teaching her to be on the dole instead of earning her own money, “he wrote.

Dunn said children need to learn the fundamental principle that money is not a gift but is compensation for work done.

However, some people think giving a little allowance is a good way to teach children on how to manage their money. Encourage them to habitually jot down their expenditures and to set aside a minimum of 10 per cent of their allowances for savings.

Dunn is right when he said that work is nothing more than exchanging talent for money. Therefore, help to unleash your child’s talent and interest, and inspire them to make money from there.

Below are a few suggestions:

• Explain the difference between “wants” and “needs” to your child. Remind him that food is more important than toys, compare his life with the less fortunate.

• Set a goal, for example to go to Disneyland in Singapore. It can make him proud of himself. Carrying a heavy  piggy bank around will give him a great sense of achievement.  

• Get your children to be involved in the household shopping. Bring them along when you do grocery shopping. Let them know your budget and ask them to bring along a calculator to ensure that your are spending within the stipulated budget.

• Do projects together to earn extra income, i.e. setting up a website where you can sell old toys, clothes, book or even things that you make together such as cupcakes or frozen pies.

• Open a savings account for your children to teach them that money kept in a bank is protected and will also accumulate interest.