TO RAISE A FINANCIALLY AWARE CHILD
There’s a Chinese saying: 水能载舟也能覆舟 – the same element, water, can transport or sink a ship.
The same can be said of money.
Money is often referred to as the root of all evil. Problems in money arise when we overvalue or undervalue money. When we overvalue money, we forget that true wealth is in our family ties, our communities, our health, and the quality of our lives. When we undervalue money, we fail to save up for our future needs and might overlook some emergencies. If we are balanced in our approach, money will enable progress, fulfill dreams, realize hopes.
It is every parent’s wish to provide their child with the best so that they have a head start in life. We all have our own interpretation of what is best – the best enrichment centres, the best schools, the best neighbourhood, the best food. One of the best gifts we can give to our children is the gift of financial literacy.
Children are aware, it’s never too young to start
Chances are, your child is already asking you these questions:
“Why can’t we buy this toy?”
“How much money do we have?”
“Are we rich?”
“Why don’t we have a car?”
How did you respond? Your responses to these questions shape their approach to money for life. “I told you so” or “Do this or else” will result in your child being weary or fearful of money. Instead, tackle it head on and discuss it with your child. “What would it take for us to afford this?” creates more possibility than “We can’t afford this”. These are great teachable moments to help your child develop a healthy, balanced approach to money.
Your child may already surprise you with their awareness of money:
“My classmate lives in a big house, his daddy earns lot of money”
“I want to have a lot of money when I grow up!”
“I want to save up so I can buy that doll”
A financially literate child is an enlightened one. She is one who understands how the world works, how to use money to work for her aspirations. Set the path right for your child and start to build her financial awareness early on in life.