04 January, 2008

Money Doesn't Grow On Trees

Since R1 will be given pocket money on a daily basis, I thought it's an ideal time to begin teaching her about the value of money & the importance of regular savings.

Otherwise, in a child's world, money comes from Mummy and Daddy's pockets. And when we are tapped, a machine magically spouts dollars after merely pushing a few buttons. It might be natural for them to assume that money is readily available whenever it's needed.

So, on the very 1st day of school ... I took out one of her birthday presents from her ex-classmate - a Chip 'n Dale coin bank - and encouraged her to put all her balance pocket money into it. After which, I shall bring her to deposit her savings into her bank account when it's full ... (sounds good, huh? ... hee hee)

Hopefully, this will help R1 to develop a strong saving habit & to learn how to make smart purchases.

Perhaps even learn why they can't immediately get everything they want - as adults often save their money for items they want to buy - and definitely not "I want ... Buy me this ... !".

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