Teaching your kids the value of money
Money is indeed not an exclusive item for the adults or grown ups, it can be used by anybody. This makes it pertinent to teach kids and teens about money and its usage. This even becomes more relevant when one considers the saying that “Seed planted early bears better fruit”. It is important to work on your child’s financial awareness early in life. In teaching kids about money therefore, personal finance consultants say the top things to know are as listed below.
A prudent kid makes a successful adult.
1 .The sooner the better
This is because until they start earning a living, and sometimes well beyond that, some kids are apt to spend money as it grows on trees. Let them know that money is not easy to get and that when one has it, one must be prudent. When they are conscious of this, it helps to reduce the pressure on you as a parent or guardian and put your child or children on the road to handling money responsibly.
2.Kids know about money earlier than you can think
Long before most children can effectively add or subtract, they become aware of the concept of money. Any three or four year old knows that there is something called money. With this knowledge, always let them know that you the parent work the money. This Create sense of responsibility and prepares them for the future.
3. Children display instinctive conservatism
Once children learn that they can get what they want with money e.g. candies or toys etc, many kids will continue hoarding every cent they can get. How this urge is channeled can determine how they will eventually be able to manage their finance as adults. In this direction, it is better to encourage the conservatism than the child to be a spendthrift.
4. Allowance could be an effective teaching tool
When your kids are still very young, giving them small amount of money is necessary. This helps them not to depend on outsiders, visitors or run errands for monetary tips. If nothing else it instills discipline, contentment and protect them from people taking undue advantage of them.
5 .Introduce them to savings, and investments
As kids get their small money, the idea of saving the money not necessarily in the bank but with mummy, aunty, uncle should be cultivated if they could be trusted with money.
This way, they would get to know that they do not just spend all the money on cookies and toys. Besides, when the money is relatively substantial, they could also be encouraged to invest it in their education, clothing, etc. These early teachings about money to children are very important because it is what they will eventually use as adults. Today they are kids, when they grow older they are less likely to heed to parents sage advice.
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