The first step to financial freedom begins with how a person thinks about money. Organisation and planning skills must be developed as early as elementary school to prepare for the demands of the modern world.
Parents are encouraged to allow their children to commit to saving a significant amount of money before spending it all on something expensive, such as a gaming console. By empowering them to do so, they are given the responsibility to hold a large sum of money and feel enormous satisfaction when they achieve their goal.
Here’s how to help your child learn budgeting skills:
- Provide a piggy bank for savings
- Let them earn their money by doing chores
- Have them take responsibility for spending on entertainment
- Most important of all, leave room for mistakes
What experts have to say
“Parents should give the children small household chores for their pocket money. This will teach them the basic life skills, learn the value of money, budget when they have a specific amount to spend and have an open mindset to do any work. This exposure will help them have empathy for the parents and build family bonding.”
Anita Singh, Vice-Principal, Shining Star International School, Abu Dhabi
“Today’s young minds need nurturing exposure that helps them excel in skills which are recognised globally. Be it financial literacy or a strong emotional quotient; students need to be equipped with skill sets that prepare them for the multi-cultural and vibrant times that lie ahead of them.”
Dr Heena Rachh, Principal, Global Indian International School Abu Dhabi
“Students don’t need to be taught anymore – they need to be prepared to constantly experience, share, accept failure, but strive for success and be empowered to be learners for life.”
Manuja Sharma, Marketing Manager, Murdoch University Dubai