Teach your children money management.

As parents we wish to teach the children almost everything. Nowadays we even send them to tuition at the age of six years as if we fear that a morning of nursery class is not enough. But when it comes to money, do we ever train them how to realise its value, understand what money is and be able to manage it well so that no matter how much they earn, they can end up with sufficient to last the rest of their days?

Nowadays if we were to look at the bankruptcy column in the newspapers we see so many being so at such a young age. And if we enquire into the matter, we discover that for some people money control goes haywire with the use of credit cards. That is one reason the government requires that for every card we possess we have to pay fifty ringgit. Perhaps the intention is good but is it effective? Just one credit card's use is sufficient to put us in debt if we spend to the limit it permits us. For example, a person with a three thousand ringgit pension is given a limit of twelve thousand ringgit. The only reason we do not go into debt is our control over our expenditure despite the amount available to us.

So what do we teach our children. We can teach our children the wondrous power it gives us to purchase whatever makes our life good. We could teach him or her to make payments for food enjoyed, extending the money in exchange for toys and food and getting back the change. In doing so, we teach them how to count note and coins. And as they progress, let them buy some small household items. I see some streetwise children able to go to nearby sundry shops to buy things even at the age of five or younger, initially accompanied by bigger brothers or sisters. And these children know about money and how much they are holding.

Then, even if we are rich, we have to create the situation for understanding the limit of the amount available. Of course, if one is rich, everything a child needs is within the ability of the parents to buy but unless the child understands that there is such a thing as limit, the child would never have to think twice before purchasing anything and should that continue into adulthood, there can be problems if the untaught adult has unbridled desires for such addictive things as gambling and sexual pleasure. When it come to the child of a poor family his circumstances would be his very efficient teachers for he would have learned early that not all things are within his reach and he has to make choices, with priorities in mind, getting the necessary and forgoing the frivolous. The necessity for choice comes when money is limited. And in the adult world of most people, there is always a limit to what can be spent. And unless we learn this while we are young, there will always be loan sharks and and unsettled debts to make life miserable. (Oh, yes! I remember reading just this morning about a married couple in their forties who made a pact to commit suicide due to monetary woes. According to the news,the husband is to be charged for the murder of his wife when he could not summon enough courage to kill himself.)

As money is limited and the need for it is obvious, parents ought to teach children to save early. Teach them to put some of their pocket money aside. Show them how it can become useful when they wish to buy some special something that is priced somewhat higher than most things and which is not possible to purchase with their pocket money although the parents have the money to buy it for them. Such times our children can learn the reason for saving. For some people, the first time they learn the value of savings is when they think of the first payment for a car or a house.

Children ought to be taught about the need to save for another reason which is old age. As I have always pointed out, the world is our audio-visual aid for teaching our children. If we meet, read or know of unfortunate people who find themselves in financial problems due to poor management of money during their younger days, use them as examples of what can happen to people who do not save enough. Show them how savings multiply in fixed deposits and other kinds of investments. Teach them the need to save. Savings and the ability to manage it well can bring peace of mind when we realise that there is sufficient and the need for charity does not arise.

Then, of course, there are people who insists that the amount they have is not enough. The question here is what is enough. Is one ringgit enough for a meal? Some people may jump at the mention of such a low price for a meal. Do you know that in Sungai Petani, a one ringgit 'nasi lemak' or coconut-milk rice comes along with anchovies, a few slices of cucumber, some small prawns and half an egg. I have eaten such a meal and it is tasty. Of course, I add in a cup of raw greens such as spring onions and a good number of edible leaves which are tasty and good. Certainly, we do not hope to eat one ringgit meals everyday for the rest of our lives. Therefore, we should save so that we do not have to wonder whether what we have is enough. But if we are ready to take on life as it comes after learning how to save and manage our money as well as spend it wisely, then the question of 'Is it enough?' does not arise.