ASSESSING CHILDREN’S FINANCIAL READINESS
Before requesting a bank accounts and bank card for my children, I do consider whether they have the sophistication, financial interest, and, most importantly, the ability to grasp the idea that wealth is a finite resource.
In terms of age, your child may have an understanding of basic arithmetic such as differentiating between types, tens, hundreds and thousands. He or she should be able to matter, add and subtract.
They may begin to seek or show more freedom, such as choosing what to buy for breakfast at the mall, or being able to generate pay for it at the cashier.
Financial vigor would be beneficial in determining your child’s eagerness for both their own bank accounts and bank card. He or she might be interested in learning about how to pay for things, why they do it, and how bank or credit cards make it possible.
You could use this as an example to explain why you paid substantially more for edible fruit or why you set aside S$ 30 for birthday gifts for children.
Ultimately, I believe it is crucial for families to impart to their children the concept of money as a limited resource. In reality, kids just fully comprehend how much money is worth once they understand how much work is worth.
Therefore, they have to be taught that trade-offs need to be made between wants and needs. The advantages of using a bank account and bank card are that they may be able to set saving goals and examine how analysis are able to show how their spending patterns are broken down.