But how? Here are some ways which we believe is useful as a start…
To specifically teach something to your child. For example, by bringing your child to the bank to open his first bank account, and showing him how it is done; tell him what it is for and how it works. Or perhaps if you are getting an endowment plan for his tertiary education, you can tell him what the purpose is, and what the processes are.
By consciously teaching your child these things, he can gain an understanding and hopefully his curiosity can be piqued. Of course he won’t be able to grasp everything at first, but a little goes a long way.
Showing by example
Other than teaching, some things are better remembered and inculcated through demonstration. One way could be by bringing your children along for groceries shopping. Rather than merely letting them point out what snacks they want, let them participate in what goes on in your head – the calculation and comparison of prices. Teach them how to compute unit prices, and compare different brands of the same item to decide which has the best value. Let them estimate the cost for the items that go by weights. Ask them to help you keep a running tab of the total bill.
Another way could be by showing your child how you manage your bills. For example, you may consolidate all your bills and settle them at the end of the month. Show them how you do it – whether by writing a cheque, or via internet banking or even at the AXS machine; let them help you out sometimes, with your supervision. Also let them know why the bill needs to be paid on time, and what happens if it is not.
Engaging through decision-making
If the family is going to purchase a big-ticket item, say a new car, engage your children in discussion. Go through the different car prices, bank loan options, budget, etc., and let your children voice their opinions. By going through it together, children could learn the thinking process behind a purchase, the planning that is involved, and the savings required.
Above are some structured ways which we believe can be useful. There are also many other things that can be practised such as giving your child an allowance from young and guiding them to save a portion of that money, teaching them to save towards a desired purchase, showing them how to invest, and so much more. It will take a lot of conscious effort and patience, but it will be well worth it!
By Alex lew / http://seekingreturns.com