I’ve just started instilling something early with Leon, my 2 year old son - a weekly allowance.
1. Savings
Every Sunday, I give Leon $2 worth of coins to put into a small glass mason jar. I want to instil an attitude of saving as early as he can grasp the concept. Seeing his coins build up slowly will help him understand the concept of accumulation over the passage of time.
2. Expenses
Soon, when he wants to purchase little things like treats or small toys, we’ll visibly tap into his savings. And from that, he’ll start to understand that things cost money, and take away from the time taken to accumulate.
Everything costs something. And maybe we should reconsider before simply splurging.
3. Income
When he’s able, we hope to give him some small jobs here and there. From this, he’ll realise that pushing ahead beyond the meagre $2/week takes extra effort and hustle.
(These jobs would be beyond routine housework, as the whole family has a duty.)
4. Compounding and Investing
And later, compounding and investing. I can’t wait to expose Leon to these magical concepts. But one step at a time!