Teach them young not to be rash with cash

Handling a bank account, learning about interest, how to make it work for you - these will all ensure that the individual is not taken advantage of.

By Harveena Herr

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Published: Mon 24 Jul 2017, 9:00 PM

Last updated: Mon 24 Jul 2017, 11:12 PM

I read with some regret the news about Boris Becker's bankruptcy. Boom Boom Becker was an exciting sight, centre court, and it had appeared to be far too premature when he opted for retirement from tennis. Right or wrong, we somehow hold public figures to a higher standard. It is also easy to assume that the greater wealth would give people in the public eye the access to better judgement or at least better management of their resources.
The other personality, also from the world of sport that comes to mind is Gazza. Paul Gascoigne - the talented British football player and manager, whose mental health troubles and struggle with alcohol are well documented - had earned a pretty pile for himself, and seemed to have frittered it away until he received a summons from the bankruptcy court. There are a lot of celebrity names that will sound familiar, Posh Spice, Gary Coleman, Mike Tyson - so many people who had millions to their name.
But why speak of stars alone? I sometimes think the education system is skewed all over the world. What we need is a baseline practice of financial literacy. What does that mean? Take a child from a village in a developing country, whose family is not very well off. Does he or she need to know the ABCs? Sure, but the number skills might just be more important. Understanding money, the handling and management of it, the growing of it. Children who understand what it is to be financially savvy have a greater chance of trying to be entrepreneurs.
Handling a bank account, learning about interest, how to make it work for you - these will all ensure that the individual is not taken advantage of. That some over-zealous bank functionary does not succeed in 'cross-selling' them something they should not even consider in the first place. Should that not be the aim of every council, administrator, or education official?
Growing up in India, one familiar principle adopted by many families was 'each one, teach one'. Many other children that we knew also practised this, under the watchful oversight of their parents. To spend a few hours a week, sharing books, concepts and knowledge with perhaps the kids of the help, hopefully did some good - to both parties in the transaction. If it did not, perhaps we need to think of a more efficient model. If the basic education system fails the largest number of people in the lowest income strata, can we devise simple methods for the transfer of such information?
As a family, we are fortunate to have help at home. She would be my assistant, I had explained to my son before she came all the way from Java to work with us. She and I have regular conversations about money. I see that as a responsibility, to show her how to conserve and grow it. Today, she has a bank account and even has fixed deposits. Some of her money has been invested into buying land and improving it. She is experimenting with growing durian, cocoa, nutmeg, rambutan, pepper vines, and vanilla.
She has an ideas book that I asked her to maintain so that she can put down her dreams and then start writing down how to achieve them. Who knows, if she does manage to open a homestay for the large numbers of tourists who go to Java - I for one, would be very happy to stay in her little hotel.
harveena@khaleejtimes.com


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