SP O N S O R E D C O N T E N T
BATYA SHULMAN, Partner at Select Investors, answers a reader’s question about financial education for children.
How Can We Raise Financially Savvy Kids?
consultation for you and your family’s financial future.
The ‘St. James’s Place Partnership’ and the titles ‘Partner’ and ‘Partner Practice’ are marketing terms used to describe St. James’s Place representatives. Members of the St. James’s Place Partnership in Singapore represent St. James’s Place (Singapore) Private Limited, which is part of the St. James’s Place Wealth Management Group, and it is regulated by the Monetary Authority of Singapore and is a member of the Investment Management Association of Singapore and Association of Financial Advisers (Singapore). Company Registration No. 200406398R. Capital Markets Services Licence No. CMS100851. St. James’s Place Wealth Management Group Ltd Registered Office: St. James’s Place House, 1 Tetbury Road, Cirencester, Gloucestershire, GL7 1FP, United Kingdom. Registered in England Number 02627518.
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May/June 2022
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*Source: Dr David Whitebread & Dr Sue Bingham (2013) Habit Formation and Learning in Young Children
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we are to have a roof over our head, ENCOURAGE A SAVING HABIT ll parents want what is best food on our table, and the fact that we for their children. This is not Children love watching their savings jar had just travelled to Australia at all. We necessarily the latest tech device or grow. The simple act of counting the enjoyed quality time with cousins and coolest toy, but equipping them with the coins and seeing the jar fill up is truly grandparents, long days on the beach foundation to be happy, fulfilled, resilient, satisfying. Saving helps children to set and at the park, and ice cream every kind, safe and successful in life. goals and plan for things that they may day. We spoke about values and what’s Teaching children about financial want to purchase in the future. Learning really important to us as a family: flying literacy and money is a fundamental to save isn’t just an essential money business class is not on our priority list. lesson that every child should learn. habit, it teaches discipline and delayed But how do you ensure positive financial It’s about helping people make wellgratification, too. beliefs are ingrained at a young age? informed choices and encouraging Here are some useful tips and strategies: financially responsible behaviour. There GIVE CHILDREN A BUDGET is plenty of evidence that proves that Giving children a budget helps them people who are financially literate are to make choices and decisions, and CREATE OPPORTUNITIES more likely to succeed in life. also prepares them for the real world. I Everyone values money more when Research shows that many of our recently gave my kids a budget to buy earned than received. This can be financial habits are set by just seven their friend a birthday present. They through doing chores around the house years old*. But how many schools offer had so much fun running around the or via a reward system for completing a comprehensive financial education toy shop working out the price of items. certain tasks or achieving milestones. curriculum at this age? Financial Should they buy three smaller gifts or Nothing beats some healthy competition education needs to be a practical one large gift? They spoke about what to earn extra points and bonuses. My son application in our daily lives, rather than their friend would really appreciate and even once asked for a ‘salary increase’. just understanding theories. It’s far more when they had change left over, they powerful to learn through life lessons bought a birthday card. It was a long but PLACE VALUE ON EXPERIENCES than a textbook. productive morning. For birthdays and special occasions, Being a parent to three boys, I’ve I don’t give gifts and instead let my overheard many conversations between Educating your children about children choose experiences that we can my kids and their friends and felt shocked personal finance is a lifelong lesson. enjoy together as family. Giving another at how often the topic of money comes If you consistently put in the effort and plastic toy is soon forgotten, but my up - and not always in a positive way. communicate a clear message about sons often talk about the experiences we My son recently came home in tears money, you will instil good habits that shared and they always look forward and as he was called ‘poor’ because we didn’t will serve your children well. That’s what I feel excited when planning their next fly business class on a recent holiday to call a good investment! birthday adventure. Sydney. This called for a family discussion. I started off by Contact Batya on Batya.shulman@sjpp.asia or +65 96268576 to arrange a explaining how privileged
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