Home' Trinidad and Tobago Guardian : May 4th 2014 Contents SBG18 ANALYSIS
SUNDAY BUSINESS GUARDIAN www.guardian.co.tt MAY 4 • 2014
We all know
trees, but do
to manage it? Making the connection between
saving first and spending later makes possible
a lifetime of responsible money management.
You can emphasise this connection by following
a plan of age-appropriate techniques designed
to emphasise the importance of controlling
Why starting early is important
Before teaching children about money, it is
important to help youngsters control their
impulses, potentially as early as age three.
According to a study presented to the National
Academy of Sciences in January 2011, a child s
self-control, as evidenced by traits such as
conscientiousness and persistence in striving
for goals, are strong predictors of success,
including wealth, later in life.
Children who scored lower on self-control
were more likely to experience problems with
saving, home ownership, credit and money
Depending on the age of your children, con-
sider whether the following suggestions are
compatible with your views about children,
self-control and money.
• Buy a piggybank where your children can
deposit money that they earn from chores or
receive as gifts. A visual chart showing how
much they save over time can be a motivator
to save more.
• Provide an incentive to reach a savings
goal. For example, when your children save
$25, consider adding a few more dollars or
letting them buy a treat under your supervi-
• Make children wait until after meals to
eat treats or until an occasion such as a birthday
to receive a special toy. The practice of delayed
gratification can help build self-control at
home, according to Mary Alvord, a clinical
psychologist and author of Resilience Builder
Programme for Children and Adolescents.
• Consider whether you want to start an
allowance. Tying an allowance to chores is a
matter of debate, with some parents believing
that children should not be paid for helping
around the house. An allowance is a family
decision that reflects your values about money.
• If you pay an allowance, require your chil-
dren to put a portion of it into a savings account
and use the remainder for personal items, gifts
Ages 13 to 18
• Even if your family has means, consider
letting your teenaged child have a part-time
or summer job to earn their own money.
Require them to set aside a portion of their
earnings for personal or college expenses.
• Establish clear rules for curfews and com-
pletion of homework before screen time. These
practices will help older children control them-
selves without your intervention, according
• In a few years, your teenager will be
approached by credit card companies looking
for college-age customers. Now is the time to
review the importance of paying a balance in
full every month and reserving credit for items
Ages 19 and older
• If your family pays tuition and other college
costs, require your college student to pay at
least a portion of personal expenses.
• If your adult child cannot find work and
ends up living with you, resist the temptation
to start paying your adult child s bills or student
Article by Wealth Management Systems,
Inc. and provided courtesy of Morgan Stanley
The author(s) are not employees of Mor-
gan Stanley Smith Barney LLC ("Morgan
Stanley"). The opinions expressed by the
authors are solely their own and do not
necessarily reflect those of Morgan Stanley.
The information and data in the article or
publication has been obtained from sources
outside of Morgan Stanley and Morgan
Stanley makes no representations or guar-
antees as to the accuracy or completeness
of information or data from sources outside
of Morgan Stanley. Neither the information
provided nor any opinion expressed consti-
tutes a solicitation by Morgan Stanley with
respect to the purchase or sale of any secu-
rity, investment, strategy or product that
may be mentioned.
The Trinidad Guardian engaged David Fox
to feature this article.
Children and money:
Lessons in self-control
Providing opportunities for children to practice self-control
and to learn about saving will help them mature into adults
who understand the value of money.
DAVID H FOX
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