Financial Literacy for Kids!

Some of you may know that I taught in the National Library Board's kidsREAD programme that was conducted by the Chinese Development Assistance Council (CDAC) Jurong Student Services Centre in Jurong West. I taught children from low income families aged from six to eight years in reading and literacy skills and to develop in them a life-long love for reading of English books.

Our children are not grounded in financial literacy
My own journey in discovering the path towards financial freedom has led me to one startling discovery! Our children are not grounded in financial literacy!

It is indeed a scary fact that our mainstream education system does not cater to sufficiently develop in our young the capacity for financial literacy. Even as I studied and developed within Singapore's mainstream education system from primary all the way to the University, I never did encounter any lesson that taught me financial literacy. Yes, I studied all the math I needed up to "A" level mathematics "C" as well as did modules in Statistics in the University but no where did I learn about financial literacy except from the school of hard knocks.

I realised through writing this blog "Fivecentstencents" that I am able to express certain ideas about personal finance in a relatively easy-to-follow fashion and would like to develop this skill further by starting another blog called "KidsRich"! Don't worry, this new blog is not about selling "koyok" or "snake-oil" about making children millionnaires by the age of eighteen! It is more about exploring different ways we can teach our children financial literacy in simple exercises and articles that touch on the why, what, who, when and hows of allowing our children to become more financially literate in this globalised world where one needs to not only be equipped with the 3Rs of Reading, wRiting, aRithmetic but also to be grounded in sound financial skills to be able to know the difference between an asset and a liability and to inculcate in the young the spirit of saving.

The power of compound interest
The power of compound interest is possibly one of the most powerful forces in the financial universe. By leveraging on a sound understanding of compound interest, we can give our children a legacy of financial skills and competencies that will allow them to make their own informed financial decisions when they come to the age of majority and when they ultimately have to take responsibility for their financial decisions both good and bad and have the wisdom to discern between what saving, spending and living within their means affects their lives.

Start them young towards financial freedom
Those of you who are parents or uncles and aunts or who come into contact with children. Consider how you are imparting them the skills of financial literacy even as you develop your own financial quotient and understand more about your choices in savings, spending and investing.

We all need to start somewhere, why not start them young on the path towards financial freedom?

Be well and prosper.