Money Hacks Ep 48: Actionable financial tips for young parents and children
Synopsis: In this podcast series every Monday, The Straits Times and The Business Times break down actionable financial tips.
This episode is aimed at how parents can get children to appreciate the value of money in an affluent society. Money Hacks co-hosts Chris Lim and Ernest Luis talk about actionable financial tips for young parents and children up to the age of 16.
How old can they be before you show them the value of money and sacrifice, and teach them the concept of cash flow (allowances versus expenses)?
1. Parents can use tokens to exchange if the children are too young to have hard currency allowances. (1:30)
2. Are there tools to help parents educate children better? (2:35)
POSB Smart Buddy is an introduction to digital payments. Children wear a watch that lets them tap to pay at certain stores such as those in school and at selected merchants. Parents download the mobile app so they can allocate allowances and check on the child's spending in real time. The OCBC Mighty Savers programme is for children below 16, and has an interest rate of up to 0.8 per cent a year.
3. What is the concept of delayed gratification for children? (3:59)
4. How to be financial role models for your children. (7:30)
5. How to inculcate habitual saving, start an allowance early even if it is tokenised, explain delayed gratification, transit to real money as early as possible, and involve children when doing abstract investments like gold. (10:25)
Produced by: Ernest Luis and Christopher Lim
Edited by: Adam Azlee
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Do note: Any financial or investment information in this podcast is for use in Singapore only and is intended to be for your general information. Any particular investment or decision should only be made after consulting with a fully qualified financial adviser.