With today's economy downturn and rising prices on daily necessities, one of the important things ever is to teach our kids frugality from an early age.
I’ve been training my kids, aged 8 and 11, the value of money, saving, budgeting and spending wisely. I feel that as a parent I need to instil habits like these in the hopes that they’d grow up to be financially independent.
It's my usual practice to give them allowances on a daily basis. This way, they’ll learn how to budget and spend within their means. I believe the earlier you start exposing your children to basic money management, the better they’ll be able to absorb the concepts and value of money as they grow older.
I've provided each of the kids a piggy bank to fill up. Infact, these piggy banks have been around since they were babies. They are actually free gifts when hubby and I opened a savings account.
I have also opened a savings account for both my kids and show them their interest earned each half year with the few hundred ringgits they now have in their bank accounts. When the piggy banks are fully loaded, I transferred their money in their bank accounts, so they can watch the interest multiply.
I've to admit that it’s not easy for me to teach my kids to save, as I am not a good role model in this regard, which is something that I'm not proud of. Ultimately, when I encouraged my kids to save, it gives me the motivation to save as well.