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Ringgit Sense
Teaching Kids To Save,
Budget and Spend Money
Teaching kids how to budget and save isn’t really an option, according to financial experts. It’s
essential. Children are “developmentally capable’’ of saving at age 5. Allowances are fine, but the
real benefit came with parental guidance on saving, budgeting and spending. It creates habits that
allow them to effectively manage their finances as adults.
What are the best road map for parents who are eager to guide their child’s financial development?
5
5
Use a clear jar to save. Show them that stuff costs Discuss Wants vs. Needs.
money.
Set a good example. Explain credit and debit Make them work for wants.
cards.
Visit the bank - Take the Give your child a small
child along and open a allowance - It should be
no-fee savings account for enough for them to buy
them. minor items. source: Inchange Debt Solution
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