It is very important that children learn the use and value of money at an early age. The parents should teach the children to build a better relationship with money and to give them an affluent life in the future when they are out on their own. There is a famous Chinese saying that ‘the rich man’s wealth cannot last for more than three generations’. It really shows the importance of good financial management education for your children.
Many children are totally confused when it comes to controlling and managing the use of money. Some children think that money and wealth comes easily as they are pampered by their parents. Some children, deep in his sub consciousness develop the habit of spending money and difficult to change the habit. This eventually developed into the habit of ‘earning more while spending more’ attitude. They fancy quality clothes, handbags, luxury goods, latest technology gadgets, entertainment and others. The parent’s attitude towards money will usually affect their lives.
It is very important that the children receive good financial management education or financial intelligence as early as possible. Financial intelligence is the ability to control the money, including how to make money, how to invest money and more importantly, how to use the wealth to create a better life and future. It is to establish a good relationship and ability to manage money. Many colleges offer the subject of ‘Financial Management’ to students. It is suggested that high schools also offer basic ‘Financial Management’ subject to students to that they can plan on how to better manage their money.
Parents should foster better financial awareness among their college kids. You should take this opportunity to let the kids take advantage and opportunities to master their own financial decision by opening a personal account themselves and managing their own funds. The financial experts suggest that the parents to apply for a supplementary credit card for their children. This can help the students to develop a better personal spending habits and financial awareness among themselves. However, do remember to set a spending limit to prevent any unwanted circumstances. They can also take the advantage of interest free period and at the same time learning to understand the credit card interest bearing and avoid unnecessary expenditures.
The banks have offered many financial products to customers such as saving deposits, fixed deposits, buying and selling shares in the stock markets, unit trust, fund management and etc. The students should learn dealing and talk to the bank for more information so that they can learn more and know about the banking facilities and services offered. Thus, parents should start teaching and implementing a good financial management education amongst their children as early as possible to generate a better financial future for their children.