The last thing I want is for Mochi to think that money is good, poor is bad, or to judge people based on money. I don't want her to value life just in money terms like going to a big house and just think the person is rich. I do not want her to make decision solely based on money. I don't want her to become a penny scraper for the sake of it. I want her to know the use of money, to appreciate money but not controlled by it, to spend wisely. I will try to educate her on value and passion by setting examples.
Good (non-finance) habits
My parents are careful about money. They value the use of money. They have habits that are not only good for your wallet, but mainly motivated by health. They never really mentioned money directly but there are some good habits I got from them.- Dine at home: Just like all people from "back then", we always dine at home. Only on rare occasions we would dine out. Even so, it would usually be the same few restaurants we go. It was probably the norm back in the days when parents can get off work early enough to cook a meal (and when we had helper at home).
- Love the nature: When we are older, sometimes the normal weekend activities are "shopping, dining out and watching movie". When I was young, we spend most weekends outdoor hiking, swimming, picnicking and flying a kite on a peak, or playing at a beach. These activities give me lots of fond memories. I still love to do them with Mister and Mochi.
- Travel habit: Although I heard many travel stories from my dad, we rarely travel by plane when I was young. We were a family of five, which makes things challenging. It might be because of this, I treasured every trip I go on. This is a bit difficult these days when almost everyone spend every vacation day aboard.
- Love an old house: We have always stayed in old buildings (actually the 10-storey building was built by a construction company owned by my grand-dad). As a result, I set a somewhat lower expectation in some aspects for my home (e.g. an old elevator, older stove). I love old neighbourhoods and old buildings where each building has its own unique characters. I cannot imagine living in cookie-cutter new-built (high rise or houses) where there are 100 of same units / house in the same area or complex. (Of course there are custom built houses.)
- Library: We had huge bookshelves at home packed with books for my parents. But to us kids, we used to frequent the library. We own a few books too, but most of them are from the library. We get to enjoy new books every few weeks. I have been doing this with Mochi as well. Reading is a great hobby that cost little and can keep you busy and entertained even when you are all alone.
Frequent the library since before she could walk
Value things we own
A friend told me once that she just booked a short trip for the next long weekend because her school age daughter said casually "I want to take the plane". Next day my friend asked her daughter about the flight. Her daughter replied "I don't want to fly anymore". How often we tried to satisfy our kids fantasy and desire because we think we can provide, because we don't want to upset?
Truth is, kids don't need everything they ask for. Kids can be satisfied easily.
- Value your belongings: In the older days (not THAT old...), consumerism was not really a "thing". People/government didn't seem to be so concerned about growth by increasing spending. We use things until they are broken and need to be replaced, not because the company came up with a new style or new product.
- Think before you buy: I don't think we "cheap out". My dad owned different cars (Jaguar, a car that looked like a limousine, but mostly Benz). My mom also loved shopping for brands. Her Dior shades are vintage now. She used her well-maintained LV bag for years. They choose what to splurge on. And whatever luxury they purchased, they take good care of them. Yesterday, Mochi saw a bunny headband she liked. I told her to keep that thought. We could consider it for her birthday or Christmas. She happily repeated what I said and left the bunny headband alone.
- You don't need them all: I try to teach Mochi that "something gotta give". If her library card only allows for 8 books, she has to pick 8 books out of the 10 she wanted. Mommy has 20 days of vacation. She has to decide if she wants me to stay home and play with her or keep the annual leaves for longer trips together. Mochi is given abundant opportunities to make decision and prioritise. She knows we cannot always get what we want (immediately or ever).
- Good things come to those who wait - That Marshmallow experiment: I haven't tried that Marshmallow experiment with Mochi. However, from delaying enjoyment of a snack, to waiting for the homemade ice cream to be churned and hardened, Mochi learns to wait from the very beginning. Of course there are times she would throw a tantrum but usually it is when she felt we ignored her request. I'm not sure if it is easier or more difficult with a 2.5 years old. Let's see if she can keep this up as she grows up! Do you have similar experience you could share?
Manage their own money
- Allowance (space out spending through the month): As a kid, I got a small allowance for snack, stationary, and tram rides. It was a very small allowance of maybe US$20 a month. I know that's how much I can spend within the month. I learn not to spend it all right away. I'd probably ask Mochi to come up with her own allowance amount which I have to approve. So she has even better understand and ownership of her money.
- Education fund / Saving: I plan to start an education fund for Mochi (that's another topic). I will let her participate and be aware that, if she has unused allowance, she can save them to the fund for future use. I plan to invest the fund in index funds. I will let her be aware that you get a return on a prudent investment. This is a topic I need to further investigate and share with you.
- For older kids - Let them own their budget: When I moved overseas to study (high school), my dad would support my finance when I was in school. I had to tell him an amount I needed, including all calculation. He would challenge me how much a carton of milk costs. I had no clue about cost of living until then. He usually sent us (my sister and I) money once a year. So I had to come up with an annual budget. After I started working 4-8 months a year on the co-op program at my University, I more or less paid for my own bills. That really helped me get an understanding of money. Although I didn't care much about saving, I made sure I save some emergency fund just in case.
Earn their own money
- Money comes from hard work: This is another point I have been thinking about. I want Mochi to know that she has to contribute to our home. She would not be earning her allowance from helping with the laundry or dusting. However, maybe I can let her make some money mowing a lawn for neighbour, or help cleaning our rental properties. What is your suggestion on kids earning their allowance? I would love to hear more suggestions and ideas from you!
We are all expected to help out around the house.
Education and passion
- Learning and passion come hands in hand: Without basic education, you cannot contribute to the society / earn a living. Without passion, money is meaningless. Education is important and it is never too late to learn. My dad is a great example in "life long learning". He got his lawyer license in his 50s and started his own law firm. Before that, he was always learning something. It is not about getting a "degree". It is about the passion to learn something new; the passion in life. I will let Mochi knows the importance of learning and of passion in life.
Giving and sharing
Finance is not just about ourselves. It is also about sharing and helping others.
- Giving: Although we let Mochi give to charity all the time, but she cannot quite get the meaning at her age. However, we will keep doing that so it becomes a habit.
- Volunteering: I prefer volunteering my time than my money., especially with kids. They see the benefit immediately. Mochi joined me to beach cleaning volunteering once. I will continue to bring her out to more volunteering. In the mean time, whenever I go to a beach or hike, Mochi and I help pick up garbage we see in the ocean and on hiking trail.
Mochi is not even 3 yet. So it may be easy for me to say. How do you teach your kids about money? Any ideas you would like to share on kids earning their allowance?
No comments:
Post a Comment