HOW TO MAXIMISE POCKET MONEY
Book smart and money smart are like chalk and cheese. Parents need to instil the right mindset of financial prudence in their children from a young age. Being thrifty and financially independent are good qualities for financial planning. Parents should share the following tips with their children on making the most out of their pocket money.
It is critical that children understand the value of saving from a young age. Parents should encourage their children to save a certain percentage of their pocket money. For example, 20 – 30 per cent of their daily pocket money should go towards the piggy bank. At the end of the year they can deposit their money saved from the piggy bank into a real bank account.
Eat out less
Encourage the child to eat at home more; it’s healthy on the body and the piggy bank. Many teenagers these days want to hang out more with their friends after school. They hang out at fast food places or arcades. Parents could make the home a great place in which to hang out with friends, have meals, and of course, study.
Discourage the child to take taxis. It is so much cheaper to take public transport, which is just as efficient. As Singapore gears up to being a car-light city, youngsters can play a part by relying on public transport as far as possible, and saving money in the process. Win win.