Money Management for Kids
What are The Problems?
If the 3 Money Laws are so simple, then what is the problem that your child may face in mastering money management skills and be rich?
Why are the rich getter richer, and the poor getting poorer?
Problem
#1
They are Never Taught
In the society of most commoners, money is related to hard work. Parents and teachers don’t like to mention money because they love their children and want them to have a worry-free childhood.
Many parents prefer not to teach about money management, and my parent is one of them. When I asked why the answer I received was that I will find out and learn along the way…
So, I went through a near-bankruptcy experience and that was painful! I don’t want my children to go through similar experiences.
Problem
#2
Wrong Age
Most adults leave money management education to ages after 10. Sadly, that’s a big mistake!
Education experts and psychologists suggest that the human brain is 95% developed by the age of 10. Thus, there is an open window for education to STICK in the child’s brain permanently.
MoneyChamp’s money management programs are designed to teach children from 4 to 10 years old. Her children and her students, who started learning in their preschool ages have a great understanding of money and the parents gain plentiful benefits.
Problem
#3
Poor Spending Habits
Most parents practise the WRONG type of money management on their children when they are young.
In most developed countries, children and scarce. Most parents and the relatives, including the grandparents, uncles, aunties, etc. tend to pamper the children by purchasing whatever they want. Toys, candy and whole lot. This only seeks to re-enforce in the children’s mind that whatever they want, they only need to cry and scream and they will get them.
This leads to the forming of poor spending habits and difficult to erase. The wastage on toys also leads to the global warming problem.
Problem
#4
Instant Gratification
Everyone loves gifts and rewards. So, when the children grow up and start receiving income, their friends will encourage them to pamper themselves with gifts and meals. This is further enabled through globalisation and ecommerce development that makes spending acitivites highly accessible.
Of course, I understand and encourage the young adults to pamper themselves with the income they earned.
However, the over-emphasis on spending will lead to the temptation to fail Money Law #1. Recently, my child’s aunt asked how my child will spend on her earnings. When I mentioned that my child needs to save first, her aunt gave me a “dirty” look.
Problem
#5
Over Emphasis On Saving
Many Asians have good habits of saving. However, many also have a tendency to over-saving. In today’s economy when interest rates are likely below the country’s inflation, depending on saving alone will lead to becoming poorer over time.
This is why the rich become richer and the poor become poorer, as illustrated in the chart below.
The Solutions
The above problems can be easily resolved by introducing the right money management system to your child.
By following MoneyChamp’s money management system, your child will know how much to spend, how to save, and when to invest.
Over time, they will become rich and wealthy. The key objective to become rich and wealthy is to empower your child to follow his/her passion and be happy. Even if your child does not have a passion to pursue, having money will ensure he/she is worry-free and be happier. Below is a chart showing the relationship between wealth and happiness.
The fact is The Rich Gets Richer. I observed the different teachings from the parents of my richer classmates. Having the opportunity to achieve a little breakthrough for myself and see the difference in my teenagers' mindset towards wealth, I want to return to my earlier passion to teach children to master money management skill and become rich, if they desire.
Location
10 Ubi Crescent
#01-20 Ubi Techpark Singapore 408564
Phone
+(65) 6848-9177
Open hours
M-F: 10:30 am – 5:30pm