It is never too early to inculcate in your children the value of being thrifty. Your children can be taught the value of money and how one can save for the future. They will also learn how to spend appropriately depending how much they have in their savings accounts.
Banks have these savings accounts targeted at children below 16 years of age. The banks allow the facility of ATM cards and hence with it the convenience of withdrawing money from the banks. (Ask your banks about these savings accounts.)
Children sometimes receive “ang pow” money on festive occasions. There is no need to spend every single cent immediately. Some can be placed in this savings account and accumulated to either earn interest or be spent on some major purchase in the future.
As parents, we give allowances for them to spend in schools or otherwise. It is recommended that we give them a fixed sum every month and it is for them to decide on how to spend it or to save part of it. This is starting them early on financial management.
Since we are getting our children to be responsible, it is further recommended that they keep their own savings account passbooks.
We can explain how these savings earn interests and it is one way to “grow” the money. The entries in the passbook can be used to explain this concept.
Written on 10/31/2006 9:01 AM
Copyright © 2006, the author known as LKT in Singapore.
The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.