Tuesday, December 25, 2007

Help your children manage money

According to financial planners children should get an early start to know financial management. They recommend the following:
  1. Fix a day every month to give allowance to your children. This is to allow them to plan their spending for the month.
  2. Keep a record of their expenditure. Children should be taught to record their monthly expenses.
  3. When the children are old enough, open bank accounts of their own. This is to allow them to learn and understand banking procedures.
  4. Permit your children to spend the money independently. However, parents should explain to them what kind of expenses is considered extravagant and what kind of expenses is considered investment
  5. As soon as appropriate, introduce tools for financial management to them. Inculcate in their minds the importance of these tools.

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