When you try to teach your children to appreciate the value of money, you start by giving them a weekly or monthly pocket money. You hope that your child will learn how to manage his or her expenses in that fixed amount and learn to save up as well.
Why don’t you take the next step and open a minor’s bank account for your child today?
Then you could put the pocket money directly in your child’s bank account and give him or her a debit card to withdraw this sum as and when they please – within a limit of course.
Having a bank account teaches your child to not just operate a bank account – a crucial money skill – but also be patient and value the interest earned every year on this account. For younger children, you can also sit them down and explain the flow of money. From your hard work to your salary, your bank account to theirs, and to the ATM. No longer will your children think money grows in an ATM!
Here’s where you get to be the Rich Dad (or parent) from Robert Kiyosaki’s Rich Dad Poor Dad. You teach your child the concept of growing wealth and not just money. No one would teach financial concepts to your child, even at school, so you must take it upon yourself to do the heavy lifting, for a very important life skill.
Help them learn how money can work for them and encourage them to build a prosperous future.