Our financial needs and responsibilities evolve as we grow. What steps can we take to enhance our financial knowledge, attitude, and behaviour at each stage of life—from childhood and adolescence to adulthood?
1. Ages 6–11: Basics, Curiosity and Positivity
Skills and Knowledge
- Recognise the need to save money regularly
- Differentiate between needs and wants, and between saving and spending
- Learn how to budget
- Develop a basic financial plan for short-term goals
Attitude
- See money as a tool for achieving small goals, and become confident in managing small amounts
- Live within your means
- Don’t be influenced by peer pressure
- Delay gratification to have more in the future
Behaviour
- Try to save coins in a jar
- Donate a small portion to charity, like on Flag Days
- Resist desires and control temptations when out shopping
- Keep track of weekly spending
2. Ages 12–18: Practical Skills, Responsibility and Awareness
Skills and Knowledge
- Open and manage a bank account
- Develop a longer-term financial goal
- Learn the prices of consumer items normally purchased
- Learn how a credit card works and about poor credit ratings
Attitude
- Embrace greater financial responsibility and financial independence
- Become financially literate and appreciate the value of sound financial advice
- Learn about investments and the risks they carry
- Appreciate the connection between effort and earnings
Behaviour
- Develop more regular saving habits, track income and expenses
- Review final goals and budgets regularly
- Learn about electronic tools and online platforms
- Avoid impulsive purchases
3. Ages 19-49: Independence, Education and Long-Term Planning
Skills and Knowledge
- Gain a deeper understanding of advanced budgeting, credit scores, interest rates, taxes, insurance, loans and long-term financial planning
- Begin to consider investments and other ways to save for retirement
- Compare the costs and benefits of online versus traditional financial services
- If in debt, seek appropriate actions through trustworthy sources
Attitude
- Prioritise long-term stability over short-term gratification
- Commit to ethical and informed financial choices in reaching life goals
- Understand that higher risks do not always mean higher rewards
- Avoid over-borrowing to minimise debt
Behaviour
- Live within your means
- Begin to build a strong credit history
- Begin to make provision for retirement contributions and tax payments
- Diversify investments
4. Ages 50+: Continuous Learning, Security and Comfort
Skills and Knowledge
- Examine the challenges that retirement has on finances
- Ensure a will and an enduring power of attorney are secured
- Keep abreast of financial products that can create cash flow
- Evaluate the risks and returns of new financial products
Attitude
- Continuously monitor your financial status, and take nothing for granted
- Be open to new information to improve financial decisions
- Resist undue temptations, particularly “get rich quick” schemes
- Be vigilant of online and phone scams
Behaviour
- Evaluate risks in the market
- Maintain a sufficient money reserve for unexpected contingencies
- Make arrangements for times when one cannot manage one’s own finances
- When in doubt, seek trustworthy and professional advice
Source: Hong Kong Financial Competency Framework