Detail

Teaching children about money requires more than telling them that "money doesn't grow on trees". Experts say financial literacy should be taught progressively as children grow, with parents playing the most important role by modelling good financial habits and having regular conversations about money. Rather than focusing only on concepts such as budgeting, parents should involve young children in everyday activities like grocery shopping to help them understand spending, value and the difference between needs and wants. Mr Lawrence Tan, Content Lead at the Institute for Financial Literacy, a collaboration between MoneySense and SP, stresses that parents' actions often speak louder than words, and that children learn financial habits by observing how adults manage money. He also notes that parents should stay informed about issues such as digital payments, buy-now-pay-later schemes and investing, so they can guide their children effectively as they grow older.

[The Straits Times]