{"id":18209,"date":"2022-02-28T19:00:00","date_gmt":"2022-02-28T11:00:00","guid":{"rendered":"https:\/\/www.comparehero.my\/blog\/uncategorized\/kick-start-childs-life-savings.html"},"modified":"2022-02-28T19:00:00","modified_gmt":"2022-02-28T11:00:00","slug":"kick-start-childs-life-savings","status":"publish","type":"post","link":"https:\/\/www.comparehero.my\/blog\/money-tips\/kick-start-childs-life-savings.html","title":{"rendered":"How To Kick-Start Your Child&#8217;s Life Savings"},"content":{"rendered":"\n<p>A parent is also a child\u2019s first teacher, showing them what they need to know about the world. An important part of this is taking them down the road of financial literacy. While some parents are apprehensive about discussing money matters with their kids, you must avoid falling into the same trap of minimal supervision.<\/p> \n<!--more--><p>As a general rule, it is better to err on the side of being open with your child about important issues. And when it comes to personal finance, it\u2019s better to start them young than to let them carry harmful spending behaviours into their adult years. Here we walk you through the process of schooling your child in one of the cornerstones of personal finance: building their life savings.<\/p> \n<p><strong>Related:&nbsp;<\/strong><a href=\"https:\/\/www.comparehero.my\/parenting\/articles\/financial-moves-every-parent-should-make\" target=\"_blank\" rel=\"noopener noreferrer\">Your Child Will Thank You For This \u2013 9 Financial Moves Every Parent Should Make<\/a><\/p> \n<h2>1. It starts with a piggy bank<\/h2> \n<p>According to <a href=\"http:\/\/www.kiplinger.com\/article\/saving\/T065-C000-S001-teach-kids-the-value-of-money.html\" target=\"_blank\" rel=\"noopener noreferrer\">Kiplinger.com<\/a>, your child can start picking up basic <a href=\"https:\/\/www.comparehero.my\/money-tips\/articles\/money-lessons-learned-from-dad\" target=\"_blank\" rel=\"noopener noreferrer\">money lessons<\/a> as early as the ages of 3 to 4. The trick is to introduce them to the concept of putting money away now to use for buying things later.<\/p> \n<p>One classic approach you can use is giving your child his or her very own piggy bank. Allow them the freedom to choose one in a colour or design they like, then show them how they can use it to store coins and loose change. Counting coins is also a great activity to engage their budding math skills.<\/p> \n<h2>2. Fun and games<\/h2> \n<p>Another way to teach your child about money is through playtime. Start by getting your hands on \u201cplay money\u201d either online or at your local toy store. Once your child has learned to identify the different denominations, they can incorporate play money into their usual games or role-playing activities.<\/p> \n<p>For example, your child can practice using play money the next time they play House with their siblings or playmates. Kids can also set up a make-believe grocery store, where they can \u201csell\u201d items, take turns playing shopkeeper, and craft their own pretend cash register out of recycled materials.<\/p> \n<p><strong>Related:&nbsp;<\/strong><a href=\"https:\/\/www.comparehero.my\/parenting\/articles\/enrichment-classes\" target=\"_blank\" rel=\"noopener noreferrer\">9 Enrichment Classes In Klang Valley: How Much Do They Cost?<\/a><\/p> \n<p><a href=\"https:\/\/www.comparehero.my\/personal-loan\" target=\"_blank\" rel=\"noopener noreferrer\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/144634072.fs1.hubspotusercontent-eu1.net\/hubfs\/144634072\/assets_comparehero\/Personal-Loan-Generic-Banner-Mar-28-2022-01-32-05-91-PM.jpg?resize=640%2C335&#038;ssl=1\" alt=\"personal-loan-generic-banner\" width=\"640\" height=\"335\"><\/a><\/p> \n<h2>3. Practising for the real thing<\/h2> \n<p>As your child grows into their school years, they may start receiving real money either as gifts or from their daily allowance. Once they do, show them the merits of saving even a small amount for future use. Do they regularly receive birthday money from their grandparents? Encourage them to set aside as little as 10% of it before they splurge on expensive toys, snacks, clothes or gadgets.<\/p> \n<p>Once they adopt this habit early and consistently, your child can watch as that modest 10% increases steadily over time. Through witnessing the fruits of their patience and discipline, your child can grow more confident in their ability to handle their savings responsibly.<\/p> \n<h2>4. Thinking and acting ahead<\/h2> \n<p>Of course, it\u2019s not enough for your child to just sit back and watch as the money comes flowing in. He or she must also learn to take responsibility for their spending habits. A key concept here is building associations between their present actions and real-world consequences. If they receive a weekly allowance, they must learn to balance that amount for both school projects and movie dates with friends.<\/p> \n<p>Another way to teach your child financial responsibility is to encourage them to save up for their own future goals. The goal can be something as practical as their college education, or as trendy as the latest iPhone. Recap your child\u2019s lessons from when they kept their first piggy bank, then expand on that knowledge. Show them how to divide their regular allowance between several \u201cpiggy banks\u201d: one for school, one for fun, one for that pair of limited-edition Nike sneakers, et cetera.<\/p> \n<h2>5. Opening a bank account<\/h2> \n<p>Once your child\u2019s savings have increased to a respectable amount, they can graduate to more \u201cadult\u201d methods of money management by signing up for their first bank account. A good place to start would be your own local bank, where you can inquire about opening a savings deposit account for your child. Some banks offer account types designed specifically for kids or young people, though you may also opt for a regular account with a low maintaining balance and a good interest rate.<\/p> \n<p>When choosing a bank alongside your child, you may be confronted with the choice of either a passbook or ATM account. Your best bet may vary depending on the bank\u2019s terms and your own child\u2019s personality. An ATM account wins in terms of convenience, while a passbook account discourages impulse spending. You may also explore other options such as savings bonds and long-term investment instruments.<br> <\/p>\n","protected":false},"excerpt":{"rendered":"<p>A parent is also a child\u2019s first teacher, showing them what they need to know about the world. An important part of this is taking them down the road of financial literacy. While some parents are apprehensive about discussing money matters with their kids, you must avoid falling into the same trap of minimal supervision.<\/p>\n","protected":false},"author":173139450,"featured_media":564,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_wpcom_ai_launchpad_first_post":false,"_jetpack_hide_featured_image":false,"_jetpack_featured_image_duplicate_dismissed":0,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"{title}\n\n{excerpt}\n\n{url}","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_wpas_customize_per_network":false,"jetpack_post_was_ever_published":false},"categories":[425],"tags":[],"class_list":["post-18209","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-tips"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How To Kick-Start Your Child&#039;s Life Savings - CompareHero<\/title>\n<meta name=\"description\" content=\"A parent is also a child\u2019s first teacher, showing them what they need to know about the world. An important part of this is taking them down the road of\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.comparehero.my\/blog\/money-tips\/kick-start-childs-life-savings.html\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How To Kick-Start Your Child&#039;s Life Savings - CompareHero\" \/>\n<meta property=\"og:description\" content=\"A parent is also a child\u2019s first teacher, showing them what they need to know about the world. 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And if you are, what are some goals you should have as a parent? Raising a child in Malaysia can be expensive and this is why it is important for all parents to have their own family financial\u2026","rel":"","context":"In &quot;Money Tips&quot;","block_context":{"text":"Money Tips","link":"https:\/\/www.comparehero.my\/blog\/money-tips"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2026\/02\/financial-moves-every-parent-should-make.jpg?fit=1200%2C628&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2026\/02\/financial-moves-every-parent-should-make.jpg?fit=1200%2C628&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2026\/02\/financial-moves-every-parent-should-make.jpg?fit=1200%2C628&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2026\/02\/financial-moves-every-parent-should-make.jpg?fit=1200%2C628&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2026\/02\/financial-moves-every-parent-should-make.jpg?fit=1200%2C628&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":17808,"url":"https:\/\/www.comparehero.my\/blog\/money-tips\/7-tips-save-money-childs-education-malaysia.html","url_meta":{"origin":18209,"position":1},"title":"7 Tips To Save Money For Your Child&#8217;s Education In Malaysia","author":"CompareHero","date":"18 May 2021","format":false,"excerpt":"Education is important for the future and development of your child. As such, it is something that cannot be left out when saving for your child\u2019s needs. 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Whether it\u2019s locally or abroad, plan ahead for your child\u2019s education with these saving options. A recent survey titled\u00a0The Value of Education - an\u2026","rel":"","context":"In &quot;Money Tips&quot;","block_context":{"text":"Money Tips","link":"https:\/\/www.comparehero.my\/blog\/money-tips"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2021\/05\/children-education.png?fit=1024%2C768&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2021\/05\/children-education.png?fit=1024%2C768&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2021\/05\/children-education.png?fit=1024%2C768&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/rpstagingdot.wpcomstaging.com\/wp-content\/uploads\/2021\/05\/children-education.png?fit=1024%2C768&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":18571,"url":"https:\/\/www.comparehero.my\/blog\/lifestyle-finance\/the-cost-of-raising-a-child-in-malaysia.html","url_meta":{"origin":18209,"position":3},"title":"The Cost of Raising A Child In Malaysia","author":"CompareHero","date":"31 March 2019","format":false,"excerpt":"\u00a0 Lets be realistic about how times have changed. In the olden days, it was a must to have kids as soon as you tie the knot. I believe this concept is evident across all racial or ethnic backgrounds in Malaysia. 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