Savvy Savers

Savvy Savers


It’s never too early to teach your child to make sound financial decisions. This will prepare him or her for financial success as an adult. And since kids learn from those around them, says Scott Mitchell, Senior Vice President of ipac financial planning Singapore, your money behaviour will make a big difference. Some tips from the company on raising a money-smart child:

Start a piggy bank.
Encourage your child to put aside a set amount of money each week. Teach them that savings should not merely be money that is left over from their allowance.

Discuss the value of things.
On shopping trips, get your child to help you decide which item gives the most value for money, for example, the best ice cream or chocolate bar. This will help them to start thinking about quality versus price.

Give your kids an allowance.
An allowance is an effective way of teaching your child how to prioritise and make better spending decisions. Give them a reasonable amount – not too much, not too little.

Set simple goals.
“Encourage saving for a toy. This is how children realise some things can’t be bought immediately. A chart certainly helps so the kids can see their goal getting closer each week,” says Scott.

Make it fun.
Go on educational family outings, for example, the local mint, or play Monopoly with your kids. Read them stories that encourage good values that are crucial to saving, like discipline. Let your kids pay for small items on shopping trips. In short, try to involve your kids in an interesting way.