children. Good to share.
Benny
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Book: How to Raise a Money-Wise Child
Publisher: HK Institute of Certified Public Accounts
First print in 2006
Text by Howard Tang
ISBN: 988-98362-8-9
==== Age 3-5: ====
Objective: Understanding the value of cash
Action: teach children start making the proper association between
money and what it can buy is to let them hand the cash to supermarket
or cashiers. This way, they can concretely see that money, in various
amounts, can bring them things they recognise and know.
Objective: (Handling of 利是) Counting of money is important
Action: It's important for them to count the money themselves because
first, they need to know it belongs to them, and second, they need to
know that counting it correctly is an extremely important matter.
Objective: (Piggy banks 豬仔錢罌) Introducing children to the concept of
saving. With a piggy bank, children associate money with saving even
before they learn to spend it. Piggy bank can demonstrate starting the
idea of "breaking the bank".
Action: Save money in piggy bank, or use individual piggy banks for
separate purposes: saving, spending, and sharing to clearly
demonstrate the differences amongst the three. Or use a transparent
piggy banks so show the progress.
==== Age 6-9: ====
Objective: Learn right attitude to recognize "want" versus "need"
Action: tell them classmates have Nike shoes doesn't mean it's a need
Objective: Aware of money, let them know that everything costs
something, and that money is earned.
Objective: instilling moral values along with money management values
(i.e. money is the means to support happiness, not the happiness
itself)
Objective: A sense of personal responsibility
Action: if you break it (e.g. a glass cup), you buy it.
Objective: (use allowance 零用錢) to learn budgeting and self control skill
NOTE: not to associate misbehaviour with money (e.g. 唔乖扣零用錢) because
it lost the change to learn budgeting control and give a wrong idea
that if they have money, they have the right to misbehave.
Objective: learning concept of bank account
Action: Buy a notebook and record the debit/credit/balance to make a
personal bank account
NOTE: learning financial responsibility. Only four columns: Date,
Debit, Credit and Balance. Make sure you children keep and update heir
own savings book to learn responsibility and sense of ownership.
Objective: Incentive to save
Action: Give them interest 利息 for their personal bank account (e.g. 1%
per month)
Objective: Learn concept of debit card (i.e. Octopus)
Action: Set specific yet loosely regulated rules for Octopus card
usage (e.g. used primarily for public transportation, even thought it
can be used for other common purchases such as snacks). Let them
decide and deal with the consequences.
Objective: Learn comparison shopping
Action: Take children through he aisles in a supermarket and look for
the best purchase based on price and quality. Also learn paying $10
for two instead of $8 for one for promotional item.
Objective: Learn Impulse shopping
Action: For a request, ask them to shop around and look for prices.
Then concluded that it may take four months of savings to buy.
NOTE: The point of the impulse shopping exercise is to guide your
child through his or her thinking process regarding spending their own
money. There is no "impulsive" factor if it is parent's money.
Allowing kids to make mistakes is an excellent lesson.
NOTE: Learning comparison and impulse shopping should by united front,
i.e. all family members do the same and say "no" on request
Objective: No award for responsibility (e.g. exam result)
NOTE: It's OK to award monetarily for science fair, writing contest
Suggested item with award: Winning a tennis tournament, winning a
spelling bee, helping to paint the house, setting up electronics
Suggested item without award: Getting into a dream school, getting an
A in math, cleaning their room, baby-sitting siblings.
Objective: Domestic helper can help children to stay within budget,
having the help of a daily monitor
Action: Insist to children that when parents are not there, the family
assistant is in charge.
Objective: effective teaching and let kids know parents are always accessible
Action: Use 3G phone to punished or reward immediately, if necessary
==== Age 10-12 ====
Objective: develop an individual sense of ownership and responsibility
Action: Open a real bank account with joint name of parent
Objective: cultivating and reinforcing the right attitude toward
financial responsibility
Action: enrol your children in community service trips during the
summer or as family vacations.
NOTE: Orphanages 孤兒院 serve as an ideal community service targets for
children because they can relate to the audience - children. Working
with other children can further reinforce the fact that money can
affluence, or having parents or a family for that matter, are not
things to be taken for granted.
Objective: Teach you children to give something a chance, before
giving up or not liking it.
Action: Trips to underdeveloped countries.
NOTE: Also teach the concept of foreign currencies and exchange
rates, and budgeting.
Objective: Build a relationship based on trust, communicate and not control
Action: Some believed that earlier children are exposed to family
finances, the better. Not to hide relative bankrupt, etc. Explain the
family financial problem to children.
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