Question

Read the following passage carefully. (8 Marks)

1. I learned to handle money at a very young age. But most children become adults with little or no financial literacy. Here are four ways to make children understand money.
2. The first way is to set good examples. Children must understand by example that money comes from hard work, and that it must not be wasted. I grew up seeing my parents work hard, earn more and save sensibly. And like Dad, I have never run into debt.
3. Secondly, we must teach basic money management at home, because that‘s never taught at school. Many parents don‘t discuss money with their children, one reason why there is financial illiteracy among adults.
4. Most experts feel it‘s best to give an allowance, depending on the child‘s age and how much the parents feels is right. By the time I was in high school, my
Dad told me about his small investment-fixed deposits, gold and property. Today I know that he was allocating his assets to spread the risk.
5. Children also learn money management by working part-time jobs. Teenagers can work part time in advertising, malls and restaurants. These jobs provide the joy of their very first earning; they‘ll also learn the dignity of labour. Today, many youngsters are deep in credit card debt and parents are partly to blame for not teaching them that borrowing money, costs money which can ruin you. Make children understand that the craving for more and more, which their friends might have, is not wise or appropriate behaviour.
6. In the age 8-10, the children are a bit more mature. They understand that money is valuable and should be used carefully to get essential things. The first lesson would be to give your kid a certain amount of money every month, similar to pocket money. If your kid demands a new toy, ask him to save the pocket money for a few months and only then will he or she get the toy. This way your child will learn to save and understand that everything cannot be bought by thinking impulsively. Every financial decision needs to be planned and then taken into account. You can also give examples from real life or some stories that the kid understands.
On the basis of your reading of the passage, answer the followings. 1x8=8marks)
(a). How can parents help their children understand money?
(b). Why is their financial illiteracy among adults?
(c). Why many youngsters today are deep in credit card debt?
(d). What important money lessons should parents teach their children in the age of 8-10​

Answer 1

Answer:

1. by setting good examples
2. Because many adults don't discuss money with their children
3. because borrowing money costs money, which can ruin you
4. Because of those ages are a bit mature

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