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Sunday, November 11, 2007

Teach Your Kid About Financing

In some of the advance country, you may notice there are some kid re-sold their toy in the market place which really act like the businessmen. Are these kid require this money to survive? The answer is not, they are putting themselves in learning how to get the first profit from their business activity. It is good to have our kid to involve in part-time job during their school holiday, such as newspaper delivery, advertisement notice delivery for earning their pocket money. From this activity, kid can gain the valuable experience and will more appreciate the money in their future life. This also make them show and prove that they can survive in this world.

Basic guideline for parent to teach their kid in financing:
At age of 3: Kid able to recognize the coin and currency note
At age of 4: Kid know how to coin value and realize that not all the thing we cant buy every single items in a store
At age of 5: Kid need to know the value of an item and know where does this money come from
At age of 7: Able to do simple money transaction
At age of 8: Know how to earn pocket money and practice the saving habit
At age of 9: Able to plan a simple weekly expense and know how to compare each of item price before purchase
At age of 10: Know how to save in weekly basis and prepare to buy a lump sum of money for future purchase
At age of 11: Know how to interpret the advertisement
At age of 12: Able to plan for two week expense and know how to use the bank service linguistic

This info is extracted partly from Richmen's Personal Memos in Chapter 20.

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