To The Moon

🌟🌟🌟Warren Buffett said that it is never too early whether it is teaching kids the value of a dollar, the difference between needs and wants or the value of saving - these are all concepts that kids encounter at a very early age, so it's best to help them understand it.

When my son was only 5, he wanted me to buy a new toy car.  I asked him how he thought I was going to pay for it.  He said "You just tap that plastic thing and you get money."

To help my kids develop financial literacy, I explained that "needs" are things that our family must have to survive,  while " wants" are things that are nice to have but our family can live without.

I believe it is good to start money conversations early and keeping them positive.  I try to integrate money conversations into my family's daily life.  When we are at the supermarket, I like to explain to my kids why I am choosing a product that is on sale.   When I get paid, I would explain how I am budgeting until my next pay day.  I try to frame the conversations in a positive light because I know it is important to develop a positive attitude towards money which will rub off onto my kids. 

Making investing relatable is one of the best ways to get my kids involved.  For example during trips to the supermarket like $Sheng Siong(OV8.SI)$  I would explain that I can buy shares in Sheng Siong.  Similarly on trips to $DBS Group Holdings(D05.SI)$  I would also inform my kids  that we can buy shares in DBS too. 

Board games like Monopoly would also encourage my kids  to learn that  investing money in properties, houses and hotels is the key to winning.  Overall Monopoly teaches kids that the right investments can help them make more money in the long run. 

Learning to save money is an essential skill that I want to impart to my kids.  Piggy banks are a fun way to start when they are young.  When they are  older, setting up a savings account will help them  learn about responsibility and money management in a practical way while earning interest in their  savings accounts. 

I would encourage my kids to earn extra pocket money by doing little jobs around the house when they are  older.    For example they can help with washing dishes or walking the dog.  I would teach my kids delayed gratification. For example  if my son  wants to have a Sony PlayStation, he would need to save for it. 

I believe that it is important to teach my kids  the concept of money and investing when they are  young so that in the future they  will feel positive and confident about money and investing. 

Lao Tze, the great Chinese philosopher once said "Give a man a fish and you feed him for a day.  Teach him how to fish and you feed him for a lifetime." 

Warren Buffett made his first stock purchase when he was just 11 years old.   The earlier my kids learn about money concepts and investing, the better it will be for them  in the future.  This is due to the magic of compounding which will allow the money to snowball over time. 

@Tiger_comments  @TigerStars  @MillionaireTiger  @Daily_Discussion  @CaptainTiger  @Tiger_SG