Teaching Children The Value Of Money
If you are a parent, you must educate your children suitably so they become conscious spenders. But this process must start with monitoring how your children spend the pocket money you give them.
You cannot expect your children to be financial wizards. So, expecting them to make financial plans may be unrealistic. But if you teach them suitably during their young age, they can manage their finances and investments properly and achieve financial stability when they grow up. In other words, whether your children have frugal habits or 'indulge' in unnecessary spending depends completely on how you, as their role model, balance your income and expenditure.
Experts repeatedly say that teaching children the value of money is an integral part of parenting. You must not limit your parenting with teaching them ethics or principles. You must ensure that they understand financial matters also. If your children are in the habit of throwing tantrums, you must be firm with them so as to ensure that they do not spend beyond what you give them as pocket money. This will help them learn how to spend within their means when they start earning. You can use the following tips.
Do Not Impart Compulsive Buying Habits Into Your Children
If you splurge for the sake of children, they will also learn the habit. You must therefore stop buying compulsively for their sake. Parenting experts say that those parents who try to satisfy their children by indulging in compulsive buying do so because they themselves have underlying desires for the items they buy. You should therefore be cautious and adopt healthy spending habits so your children can learn the habits from you.
Teach Them The Habit Of Sharing With Siblings
Never forget that your children can easily learn habits from you. If you and your spouse share everything between you, your children may learn the habit. For example, when you buy toys, you must tell them that they must share them among themselves. Apart from teaching them this habit, you can reduce your expenses by buying only one set of items.
Giving Them Pocket Money Is A Good Idea
Though this is a good idea, you must closely monitor how they spend their pocket money. They must learn to be responsible and only if you give them this chance, they may not learn. You can begin giving them pocket money from the age of 10. For deciding the amount, you must know their spending pattern. So, discussing with them how they are likely to use the amount is important. You can even ask them to bear some of the minor household expenses. This will teach them responsibility because they may even try to reduce expenses incurred on those heads.
Teach Them The Differences Between Necessary Items And Unnecessary Things
If you supervise the spending pattern of your children, you can guide them so they do not buy unnecessary items. They will gradually help them learn the differences between necessary expenses and unnecessary ones. Never try to preach them when they err. It is better to converse with them rationally so they may not repeat the mistakes.
Teach Them To Maintain An Expenses Journal
If you teach them the habit of maintaining an expenses journal, they can keep track of how they spend their money. This will help them control their expenses.
If you adopt these steps consistently, your children will learn the value of money.