Money management is very important in today’s highly competitive world where the price of every single thing has been raised drastically either it is a cost of education, childcare, prenatal pregnancy or postnatal pregnancy care. If you are a married person and have a family then you have to be very alert about the financial matters.
You have to take full-fledge information that how actually your kids and helpers are spending money. According to a recent study, most Singaporean parents don’t really know how their children and helpers are spending the money that they give them.
Usually, parents hand over cash to their kids for the daily allowance or to their helpers for grocery shopping.
If you really want to avoid the unnecessary spendings then it is good to ask your kids to account for every single cent they spent with proof of receipt. It has been noticed that parents just assume that the money is being used for what it is meant to be used for. But the reality is something else. There is also a significant discrepancy between how parents believe their kids spend, compared to how their youngsters actually spend their allowance.
Kids And Their Spending Habits
According to the recent study of Yolopay, parents believe that there are three categories on which their kids are spending cash and these categories are food, stationery, and transport. If we are talking about the percentage of money spent on these three categories then it is 63% on and off campus food, 19% on stationery and school-related items and 9% on transport facilities.
Source: The Asian Parent
However, parents will definitely shock to know that this is not how their kids actually spend their money. According to the research of the National Youth Council, The State of Youth in Singapore, 2014, it has been found that children spent most of the money on clothes and apparel. Singapore teens spend 8% of their daily internet usage on buying items online.
Where Are You Going Wrong?
As there is a lack of transparency in cash spends which makes accounting difficult and parents are aware of the problem in monitoring cash which their kids spend and this inability to monitor their child’s spending habits, is troubling for many parents.
Why You Should Change This?
There is no doubt that financial savviness does not wait till your kid become an adult. it can be learned from a very young age, especially if parents take responsibility for their children’s financial education. One of the most basic principles which they need to learn is that of saving and spending prudently.