Article from the New Straits Times dated 10 July 2013
SETTING AN EXAMPLE: Children should be thought the value of money
BUKIT MERTAJAM: WITH Hari Raya Aidilfitri just around the corner, and household debt at an all-time high, prudence should be the order of the day.
Parents were yesterday advised to minimise the amount of duit raya given to their children and to save the rest or invest it in a long-term investment plan.
Credit Counselling and Debt Management Agency (AKPK) corporate
communications head Mohamad Khalil Jamaldin said giving duit raya in the form of investment would be a good way of teaching children the value of money.
"Parents can also give their children precious metals (gold or silver) of small denominations to kick start their wealth building."
He said some parents who preferred to invest in Amanah Saham Bumiputera (ASB) and Permodalan Nasional Bhd (PNB) for their children instead of giving money during Hari Raya.
"For many children, Hari Raya will not be the same without getting duit raya, so parents should set aside a small amount of cash to be given to them in the spirit of the festivities," he said, adding that parents should take a more proactive approach with their children's spending habits.
Khalil said the degree of intervention in a child's finances would depend on his or her spending habits.
"If the parents noticed their child is saving money and prudent with his expenses, then monitoring and evaluating his spending habits would be sufficient.
"However, if the child is spendthrift, then the parents will have to instil better money managing habits."
Khalil said parents should encourage their children to save money from young as it would assist them to make better financial decisions.
"Parents can instil the habit of saving in their children by providing financial education to them and exposure on banking terminologies and practices.
"Think of duit raya as a bonus for kids, the way working adults receive their annual performance bonuses.
"We normally use a small portion of the bonus and save the rest, so we should encourage our children to do the same."