Giving children an allowance and familiarising them with their bills will instill good financial habits.
Tips for teaching children how to be moneywise
Teach your children about money as soon as they can count. This will ensure they have a solid understanding of the concept from a very young age.
Allocating a regular weekly or monthly allowance and ensuring that they use it to pay for their trivial needs will get children into the mindset that money is not unlimited.
Assign additional payments that can be earned for chores carried out around the house or garden and scale these according to the difficulty of the task.
Teach kids that they need to budget first for essentials such as lunch money, school books and their phone bill, if they have one, before they spend on items that they don't really need but would like, such as fashion, movie tickets and computer games.
Open a savings account for your child and encourage him/her to transfer whatever is left of the allowance at the end of every month once they have accounted for all their expenses.
* Emirates NBD