Make the most of it Raya to let your children know the value of money and, most importantly, how to manage it wisely. Young children may not yet be aware of the value of money or how to handle it, they are always happy to receive it, which makes it a great time to instill good management habits. ‘silver.
Teaching children about money is not easy, and they often learn more from our actions than from our words. Shaping them to be good with their money is a long process, but by aligning these important lessons with those memorable occasions, you will help them remember those lessons more vividly.
Here are some simple but impactful ways to get started:
Be a good role model
Parents are the child’s first role models in acquiring financial management skills. Like most life lessons, what we say doesn’t carry as much weight as what we do.
Show your kids the difference between their needs and wants every time you take them shopping. A packet of chocolate or chips is a need, but a bottle of milk for your child is a need.
Explain the difference to them, and with this habit instilled, they will naturally go through the same thought process every time they need to buy something.
To spend or not to spend?
If your child is old enough to receive an allowance (whether daily, weekly or monthly), it is always best to teach him how to save at least 20%. However, when it comes to Raya says, this rule should be reversed. Instead of saving 20%, the child should learn to save 80%.
Teach them the beauty of saving and making that money work harder. Even if you’re stuck at home, you can still show them how to open a savings account online and teach them how savings accounts work. If your child is fortunate enough to have a large amount of money in savings, you can even open a fixed deposit account online these days and show them how the money they save can be used to generate money. rate of profit.
This will motivate them to save more and start over every year!
Deferred gratification is an important and essential lesson
Like any child, asking for new toys (even if they already have hundreds of them in the house) is inevitable in almost any purchase.
With a huge amount of money received for Raya, it is too tempting for them to spend it all on toys or games.
However, by letting them do this, they won’t learn how to manage their money. Have your kids sleep on it before making a financial decision. If after a week or a month they still want the same toy (more often than not they would have forgotten it), you can ask them to save their allowance to buy it.
Giving rewards teaches value for money
If you give your child Raya says this year, think about his performance over the past year and match it to the amount you plan to give. It inadvertently teaches them the relationship between performance and rewards – which is basically what it means to be employed.
This lesson in life is something that will be of use to your children even as they reach adulthood.
Supporting savings habits and practicing the age-old theory of the reward of work will give them a better understanding of the basics.
These simple tips above don’t require parents to do anything extraordinary or incur additional expenses, just changing their habits and seizing the opportunity to teach your child some valuable lessons. Once the seed is planted, your child will expect the same every year when they receive their Raya says.
The spirit of Raya has always been about moderation and sharing. These two values should be taught to your child when it comes to financial management.
Selamat Hari Raya and may this year bring you and your family joy and happiness!
This article was first published in July 2014 and has been updated for freshness, accuracy and completeness.
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