What children in UAE should know about money

Conversations with children sometimes, can be so enlightening. Their innocence has the incredible power to see things as is, without really filtering any elements through the various prisms of social life. A trait I think, we adults usually abandon as we add years as well as experience. We like to live in our own bubble, until we have a child around who is ever so eager to burst it. A chance meeting with my nephew in December was one such event. The little fella, barely 10 years old, revived some pertinent personal finance lessons that I sometimes consciously try to forget.
We were at Dubai Mall for my dose of retail therapy. In a couple of hours, I was lugging at least six bags. Before I stepped into another store, Hriday said: "Bui (affectionate form of address for Aunt), haven't we shopped enough? Let's take a break now."
I was startled, and amused. I thought shopping was as much fun for children as for adults. Guess not! So we sat at a nearby bistro and he asked me with studied calmness: "What will you do with so many clothes?" My impulsive answer would have been 'I need to keep up with the Joneses, you know'. But I resisted, and replied: "The more, the merrier, right! But why do you ask?"
"Mum and dad say that we should not indulge in binge shopping. That money can well be spent somewhere else," he said. And instantly I replied, "Like how? Where?"
"Oh, that's for you to figure out. You need to see what is more important to you. For dad, it's usually holidays; for mum, it's different courses, and for me, games. We save each month for these," he said.  
In a world where grown-ups usually find it hard to rein in their impulse to shop, and have a frail relationship with their savings and bank accounts, here was a kid who seemed to have already developed a good money-sense. He was taught at a young age, or may be, he imbibed more by watching his parents. But most importantly, he picked up a much-needed virtue early on in life.
I was eager to learn more. I asked Hriday if he gets any pocket money, and how he spends it. "Of course, yes. I get pocket money every month; it is credited into my bank account. Mum opened this account for me when I was eight," he said.
His parents helped him understand how internet banking works. After which he created pockets in his bank account that allow him to squirrel away half of his monthly pocket money for saving. "Last year, I bought a 3D pen with my savings. It is so incredible," he told me with a sparkle in his eyes.
Hriday, I think, gets about Rs900 per month. Of which, he saves around Rs450. Living in Dubai, when my son turns about six years old or so, I think I'll give him about Dh50 a week. By his teens, it might go up to about Dh100 per week. Much really depends on inflation, too.
Many parents excel at teaching their children safety aspects and good manners, but baulk at talking about money matters. Talking about money, for many, is a taboo, or sometimes an ego issue. 'How can we tell our child that we can't afford it?!' But it is important to start early. It is important to tell them that we work hard for the money, and the ubiquitous credit cards aren't really magic wands. The credit gathered on it needs to be paid every month, and not revolved, to avoid any extra charges.
The best way to teach your kids all about money is by enlisting them in various chores. Let them tag along on your weekly grocery shopping trips. Make lists with them, and teach them to stick to the shopping list. Pique their interest by engaging them in budgeting discussions. Give them pocket money, and guide them on how to spend and save. It's one of the best investments you can do. Teaching them how to live within their means and save for retirement as early as possible will give them a running start. Catch them young.
Suneeti is our money honey, loves to keep a track of every dime that gets in and out of her wallet
suneeti@khaleejtimes.com