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5 FUN-astic Activities That Teach Your Kid About Money

Money gives people, of all ages, the decision-making opportunities they need in life. Educating your children to make wise money decisions earlier on will affect their finances in the long run. Why not teach them about money with a hint of fun?

1. CREATE YOUR OWN BILL

Aside from language, art is one of the child’s primary modes of communication. Let your children understand the importance of the design of a note by letting them create their “own S$2 bill”. Use crayons, markers, and pens for this craft. Tell them to use their imagination to decide whose face they shall put in the front and what infrastructure they shall put at the back.

2. USE A PIGGY BANK OR A MONEY JAR

Setting up realistic goals is the foundation to learning about the value of money and saving. Ask your children what they want to buy with their money. After identifying the short-term goal, provide your child with a small piggy bank or a money jar where they can fill up their savings with. Have your child draw the picture of the specific toy on the side of the piggy bank or the money jar.

You may also want to help your child understand that some items will take longer than others to save for. For these long-term goals (e.g., going to Disneyland Hong Kong), provide them with a bigger money jar.

3. SAVE BY SORTING

Based on experience, 3-5 year old kids love to sort things. It trains them cognitively too! Incorporate money in this enjoyable activity by letting your child sort coins in the different denominations of 5, 10, 20, and 50 cents. If your child correctly sorts those coins, reward him or her with your spare change. Ask your child to save this money inside the piggy bank or the money jar.

4. PLAY “FINANCIAL” GAMES

Preaching about money can be a boring subject for kids but if you open up the discussion with a game then that shall stir things up! Play games that teach children about financial concepts. Such games include Monopoly and The Game of Life. They will not only have fun but it will also shape their money management skills.

5. TAKE ADVANTAGE OF TECHNOLOGY

Use technology to your advantage by letting your child watch free videos that teach the basics of making and saving money. For example, your preschooler can learn about salary by following these steps:

a. Describe your job to your children. You may even bring them along one in your workplace and give them a tour.

b. Introduce this video of a farmer that gets paid for supplying milk. This short video explains the concept of money to children in a simple and animated manner.

Or you may print this colorful and informative activity book by Sesame Street.

Sources: 1, 2, & 3

The Age-Old Relationship Of Money And Time

If you lived in Singapore long enough, you will realize that time is money! Not in the literal sense. In a fast-paced work driven environment, time is seen as a valuable and finite resource. Since time is irreplaceable, we must accomplish tasks as quickly as possible. You can always make money but you can never bring back time.

Time and money’s dynamic relationship is manifested in different daily scenarios such as these:

a. HAVING TOO MUCH TIME

Experts say that the unrealistic expectations people have with time outweigh their irrationality with money. It is because measuring our lifespan is a complex task. In a study, participants placed more bets when they gambled with their time than when they gambled with their money. Time is such an ambiguous currency that people cannot see its actual worth.

b. HANGING OUT WITH THE CROWD

Financial psychologist Brad Klontz said that: “It’s the herd instinct that influences each of us, particularly when it comes to our wallets.” Generally, we surround ourselves with people with the same monetary habits. If you frequently hang-out with a cautious buyer, you are more likely to learn a thing or two about the importance of budgeting. And that is not a bad thing!

c. POWER OF COMPOUND INTEREST

As an investor, the longer you keep your money on the account, the more you will make out of it. Elevation of your wealth each year is possible because of Compound Interest. This is why it is advantageous if you started young. And if your “younger years” passed, the next best thing is to start now.

d. BUYING A CAR

When purchasing a car, the present value of your money may not be enough. And you will have to make several financial strategies to increase your future value of money. Watch this short video to grasp its idea:

According to Investopedia, “Time Value of Money is the idea that money available at the present time is worth more in the future due to its potential earning capacity”. Provided that money can earn interest, any amount of money is worth more as time passes. Thus, it is important to calculate the Time Value of Money before you start investing.

Sources: 1, 2, 3, & 4

Why Is Earning Money A Challenging Task?

COMMON REASONS FOR DIFFICULTY

1. FEELINGS OF INADEQUACY

The feelings of unworthiness and incompetence can drag many people away from accomplishments. If your mental dialogue focuses on these things then it can result to low self-esteem, lack of enthusiasm, and lack of creativity. No matter how much you want to succeed, these results can make you unsuccessful at work.

Your mental dialogue affects your behavior.

2. NEGATIVE ASSOCIATION

Money has been portrayed in media as a currency that most people fight for. Whether the news showcases a bank robbery or criminal dealings, the world has seen how money can make people “bad”. As the saying goes: “Money is the root of all evil.” This negative association fed by the environment is stored in our unconscious mind. If it is something undesirable, your unconscious mind is bound to “protect” you from it.

Hence, the negative association can affect how we deal with money.

3. FINANCIAL FEARS

Most of us are overwhelmed with a certain financial fear. Some of us may take the conscious effort to resolve it. However, many of us do not take the necessary steps to overcome it. They simply allow the financial dilemma to drive their life choices.

Know if any of these fears consume you (click here).

4. THE COMPETITION

One the higher end of the spectrum are the people who earn millions of dollars each year. Sam Wilkin, economist and author of Wealth Secrets of the One Percent, says it is difficult to be as rich as them because of the competition that is present in an open free market economy. Much like United States, Singapore has a highly developed and prosperous free-market economy.

There is a possibility to become immensely rich but you will have to dedicate your life to high-risks and high-return strategies.

STEPS TO TAKE

1. DO NOT FOCUS ON MONEY ALONE

If you take money as your primary motivation to work then, you will be depressed when it is gone or not enough. Focus on the reasons why you earn rather than how much you earn.

2. LOVE WHAT YOU ARE DOING

If you love your job then you will have a positive association with money and occupation. You will find fulfillment in your passion even if you have a relatively small income and long working hours.

3. MANAGE YOUR MONEY

You shall have control over your money and not the other way around. Be wise in saving, spending, budgeting, or opening a business. Instead of a shopping list, make a list on how you can grow your wealth.

Image Credits: pixabay.com (CC0 Public Domain)

Sources: 1, 2, & 3

How To Solve The Most Embarrassing Money Experiences

1. WHEN THE BILL COMES

In Singapore, a passion that bonds us together is our love for food. Naturally, you will find yourself at the center of a large gathering in a restaurant or an eatery. But there is always a tad of confusion once the bill comes. Do you split the bill evenly or do you pay separately (only for what you ordered)?

Light can shine into the situation if the organizer of the gathering speaks up beforehand about the payment arrangements. Otherwise, speak up for yourself before you order. This way, you will not be shocked if you end up paying more that S$50.

2. WHEN YOUR IRRESPONSIBLE FRIEND BORROWS MONEY

In a big clique, there will always be that one person who seldom pays for the money he owes. Although your irresponsible friend is always present during his time of need, he immediately vanishes as the due date of payment comes.

The situation may seem complicated at first but you can surely get out of it. Simply say that you wish to help however, you do not feel comfortable in lending that “amount” at the moment.

3. WHEN YOU ARE OUT WITH A RICH FRIEND

Aside from the irresponsible friend, there will always be a “rich” friend. Whenever you hangout, you end up spending more than you desire because you feel pressured to keep up with your friend’s lifestyle. The situation gets worse if you promised to treat that friend out and he orders the most expensive thing on the menu. I only hope that you have enough money!

To solve this embarrassing dilemma, be honest to your friend about your financial capacity. Explain that you really want to hang out but your tight budget does not allow you to. If he is a real friend, he will understand.

4. WHEN YOU GET DECLINED

There is nothing worse than having a sales clerk or a waiter tell you that your credit card has been declined. In fact, a 2013 survey by CouponCabin.com rated this as the “most awkward money moment”. I can attest to how unpleasant this money-related experience is.

A couple of years ago, I was working as an administrative officer at a fitness studio. A rising Hollywood celebrity came to pay but her credit cards got declined. She was furious at me and gave her debit card instead. Thankfully, the transaction was successful.

Image Credits: pixabay.com (CC0 Public Domain)

You can handle this situation better by keeping your cool. Talk to the personnel privately and arrange an alternative form of payment. Consider going to the nearest ATM to withdraw some cash.

Sources: 1 & 2

Personalities That Affect Your Success At Wealth Management

A wealth manager offers a high-level professional service which combines investment advice, accounting services, tax services, retirement planning, and legal planning. Generally speaking, wealth management is more than just about investments as it encompasses all the areas of one’s financial life.

Because of the pervasive nature of wealth management, a crucial factor affecting its success is your personality. Understanding your own personality toward money will help you identify the factors that are beneficial and harmful to your wealth. Start identifying which personality category you belong to. This can increase your self-awareness as well as take the right wealth management plan.

THE IMPULSIVE BUYER

A prey to bargains and sales, an impulsive buyer is a person who hates shopping lists and likes to go with the flow. He or she achieves psychological gratification through spending money on things that are often unnecessary. The urge to spend is usually regretted.

Image Credits: pixabay.com (CC0 Public Domain)

Solution: Remove the immediate ability to spend by keeping all your credit cards at home and by bringing nothing but a substantial amount of cash.

THE UNCONTROLLABLE DEBTOR

Falling under the umbrella of spenders, the uncontrollable debtor borrows money that he or she will readily spend. They are at risk of incurring high amounts of debts, impaling their credit score, and bankruptcy itself. With an outstanding amounts of debts, no successful wealth management can take place.

Image Credits: pixabay.com (CC0 Public Domain)

Solution: Identify all your debts and rank them according to interests. Start by ceasing the debts with higher interests and progress from there.

THE CAUTIOUS MANAGER

Unlike the two personalities mentioned above, the cautious manager likes lists and plans. People in this category also love to spot the greatest deals for their money.

Personally, I consider myself as a cautious manager. I keep track of my monthly expenses in order to analyze my spending habits. In terms of my wealth management efforts, I am very conservative that I invested my money on Mutual Funds (Bonds) alone.

Image Credits: pixabay.com (CC0 Public Domain)

Solution: As you take lesser risks, look for the savings account that offer the highest interest rates.

THE SMART INVESTOR

The smart investor is capable of managing his or her own money well. People under this category have a clearer understanding of their financial situation and they are actively putting their money to work.

Solution: Improve your knowledge on in-depth topics on investments and wealth management through several resources such as books and online articles.

Image Credits: pixabay.com (CC0 Public Domain)

Sources:1 & 2

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