Sunday 15 February 2015

Money Lessons for Children

It's been around a year since I've given my children an allowance of $10/month and they've saved up a lot. But, they wouldn't have been able to save as much if I had not given them simple rules of spending. Spend $20 after they've saved up $100. I'm planning to increase their income to give/contribute and grow/invest to enrich their experience with money.

I've had many conversations with them, and they have learnt to cherish their savings. So much that every time I joke if they should contribute for purchase of theme park tickets, they would choose to save for purchases they would like to buy. Toys. 

They are learning about opportunity costs from their monthly allowances. But the problem is, I want to take them to the theme park! Well... maybe I want it more than they do, but I'd like them to spend on experiences rather than toys that only give temporary satisfaction rather than memories. (memories they might forget at their age of 8 and 5)

I'd like them to contribute to the family. Eating out and entertainment costs money. Maybe they didn't ask for it, but they should chip in. The outcomes I hope to have through their lessons in contribution is a feeling of responsibility. I hope when my kids grow up, and they borrow money from me or whomever, I want them to have the integrity to return the money owed. It's a 20 years lesson that I need to keep building on.

Lastly, besides saving and spending, I'd like them to consistently give and grow their wealth.

And establish prayer and give zakah, and whatever good you put forward for yourselves - you will find it with Allah. Indeed, Allah of what you do, is Seeing.
2.Surat Al-Baqarah (the cow; 110)

The example of those who spend their wealth in the way of Allah is like a seed [of grain] which grows seven spikes; in each spike is a hundred grains. And Allah multiplies [His reward] for whom He wills. And Allah is all-Encompassing and Knowing.
2.Surat Al-Baqarah (the cow; 261) 

No comments:

Post a Comment