KT for Good: How to introduce children to money

Dubai - Make your child money-smart with these tips.

Suneeti Ahuja Kohli

Published: Mon 16 Sep 2019, 10:54 PM

Last updated: Tue 17 Sep 2019, 12:57 AM

Is your child money-smart in UAE?
Preschoolers and kindergartners
> Introduce them to cash, not plastic: Make them pay at the grocery stores using cash, and have a clear jar at home to stock all change. Let them dip into that jar to make purchases for them, like cheese sticks, candies (if you give them), milkshakes, etc. the little exercise will whet their interest and be a good starting point.

> Play board games: Games are the best way to pique the interest of kids, and are great conversation starters. There are plenty of apps in the market (Rooster Money, for instance), and board games (Cash Flow, for instance, developed by author of Rich Dad Poor Dad) that can help. Explore and see what works best for you.

Elementary school students (age 6-13)
> Opportunity cost: Parents sometimes say no to certain buying requests of kids, not always because they cannot afford it, but they know it would be a sheer waste of money. However, the message is not conveyed that well to the children. "Instead of saying that we cannot afford to buy this, or it is a waste of money, tell your kids how this money can be spent in a better way. So, it is more about equipping your child with reasoning abilities to make them more discerning about money matters," suggests Pinto.

> Allowances and commissions: Allowances and commissions are a great way to initiate children into money management. While allowances teach them budgeting and critical skills of delayed gratification, commissions for household chores make them more responsible and surely give them an understanding of worklife.
Teenagers
> Bank accounts: Open a bank account for them and show them how to ?manage cash flows and online banking. And gradually ?introduce them to the ?world of investing through online portals.

> Importance of giving: Once they start understanding money, teach them about the importance of giving. Pick any charity or offer help to someone who ?needs.