|
 Before you read on, one disclaimer: this article will not show you how to teach your children to understand the stock market OR trade in shares. However, it will give you ideas on how to teach them the concept of value as an important life skill, especially during these difficult times. After all, a penny saved is a penny earned - get your kids to be part of the family budgeting effort. We also provide some tips on how your kids could help to generate some money, instead of being on the spending end :)
Generally, an effective and hands-on way of teaching children the value of money is to get them involved in your budgeting and shopping activities. Here's how to get started:
1. Make a shopping list
If your children have learnt to do some simple writing, get their help in preparing the shopping list. For smaller children, drawing a 'visual list' or putting together images in a computer program could be fun. Leave spaces for them to write in the number of items required and the price of each item.
2. Go through grocery ads and brochures
On Fridays and Saturdays, the local papers are full of grocery ads from various stores. Look for items that are frequently used in your home and note the prices of these items. You can even cut out these ads and circle the items. Note: Your children may be more interested in certain items they particularly like, e.g. certain toys or preferred cereals and confectionery. You can also take note of these items and refer to them later when you are teaching them the concept of value. For older kids, get them to look out for discount coupons or special offers for selected cardholders e.g. for SAFRA or NTUC card members.
3. Point out common sales tactics and terminology
When browsing through the papers, point out the catchy words that are often used in headlines and captions: Buy one get one free, while stocks last, With every $20 purchase etc.The reason behind this exercise is to point out that while genuine discounts do exist, there are special offers that do come with a certain condition, so it pays to be discerning at all times.
4. Go comparison shopping
Armed with a shopping list, bring your children along when you do your grocery shopping. If possible, avoid peak periods when the supermarkets are full of jostling crowds, or you may wish to start with a smaller list rather than your weekly or monthly list. Get the kids involved in looking for the items in the list. Tell them your budget as well. Where applicable, ask them to look at similar products from different brands and ask them questions. Your kids can get lots of hands-on experience in comparing products based on different variables e.g.
- Price: which item is more expensive?
- Appearance and taste: Which item looks better / smells nicer / tastes better (based on past experience)?
- Weight and volume: Which box is bigger or heavier?
- Discount factor: Which items come with coupon savings?
Ultimately, what we want is to teach them the concept of value - of getting more for the same price, or a better experience/product for the same price. This may be easier to demonstrate with basic essentials such as flour, sugar and detergent. In addition, show them how a cheaper product may not necessarily give better value e.g. a large bottle of soft drink may be much cheaper than a small bottle of cordial, but the cordial can be used to produce several times the amount contained within the soft drink bottle.
5. Help them plan for the things they want
If you've done the above steps, your kids would have a better understanding of how far money goes, and what 'cheap' and 'expensive' mean in your book  Their mathematics skills may have gotten a boost as well! Now, they may be able to view the material things they like from a new perspective e.g. the cost of that Transformers collectible toy or video game is equivalent to a grocery cart's worth of items. Review how they spend their allowance and help them draw up a savings plan to save up for the things they want. Get them to do their own 'comparison shopping', and where possible, buy children's products or toys at during toy fairs or from wholesaler stores. Your children may be quick to learn that the same toy or game from a specialist store may cost several dollars more than the same item from a department store shelf.
Once your children have understood the concept of value and money, get them to apply their awareness to their daily activities in the home:
6. Understand the concept of utility charges
Teach them to read the electric meter and interpret the figures in your utilities bill, and fix a timer near the bathroom water heater. Let them know that with good energy-saving habits and water conservation habits, the money saved can be channeled to other pursuits such as a family vacation or a special treat at a restaurant. When children understand they can actually BENEFIT from making it a habit to switching off lights when not in use or not letting water run freely, it is easier to make these habits a part of their daily routine, which will save YOU money.
7. Make things last
Enter the gift section of any store and you may find this notice: 'Nice to look at, good to hold, if you break it, consider it sold'. The same concept can apply in the home - if children learn to take good care of their belongings and general items in the home, less money would need to be spent replacing broken or worn out goods, which would mean more money for the family savings bank. You can encourage them by giving them incentives for taking good care of their schoolbag, stationery and personal items - perhaps a treat at the end of every school term.
8. Turn trash and unwanted items into cash
Rag-and-bone men buy old newspapers and some recycling machines will take in used drink cans in return for discount coupons. Get your kids involved in putting these aside. As children grow up, there would also be items they no longer want or use, for example toys, children's furniture etc. You could donate them to friends, relatives or a charity (e.g. the Salvation Army) or turn them into cash at a second-hand shop such as Cash Converters.
The above ideas may just turn your kids into your savvy finance assistants 
Do you have other tips to share? Share your thoughts below, we would love to hear from you.
 |
Family Focus 