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How to Train your Kids about Money Management
Money management is something that we all study in schools and colleges but learn only at home. At college we study about finance but do not learn how to handle personal finance so home is the best place to teach about handling finances.
Young age is the best time to train your kids for anything and everything. Whatever you do in front of your kids will help them make their priorities in later life so do the best in front of them and in return expect good from them. Some simple strategies can help you train your kid about money management. Many values which become in younger age stay with us for the whole life so its better to say no to your children's unneeded demands in young age than to give them wrong training. Inform them about the importance of spending wisely. By avoiding impulsive buying and wastage of money you can train your kids about the use of finances in later life.
Money Management Tips for Kids
Give your kids incentives for completing any house chore like giving water to plants, cleaning their rooms or putting everything in their proper place.
Benefit: from childhood they will know that money can only be obtained by working hard. They will give importance and respect to work. Secondly they will never feel shy in doing any odd job in their later life. This is the best and easiest way to tech children about sense of responsibility.
Keep a penny box for your kids so that if they have some meager amount they can put it there. Sometimes kids throw money here and there as they do not know how important is it for them if they have a box they will save it.
Benefit: we do not care about small amount of money. Money wastage take place just because of this small amount of money. Kids will know that small can become big as they will save money in the penny box and later on get handsome amount out of the box.
Develop habit of giving to the needy persons. Ask them to give money even if it is a coin of 1 to a charity.
Benefit: two habits of every successful and rich human beings are that they do not waste money on useless stuff and that they give money to charity. Let your children feel the pleasure when they give money by their own hand. This will also reduce love for stuffing their wardrobes, rooms and bags. They will know that money should always be spent on the right place and for the fulfillment of right need regardless of whether it is your own need or of someone else.
Keep their wardrobe simple so that they know about how to fulfill needs and how to keep it simple rule in their life.
Benefit: from childhood say no to their unneeded desires. If you start buying unneeded stuff for them you might feel good but will ruin their personalities and they will face many problems in later life. Buy as much as is necessary for them.
For school-going kids make home-made lunch rather giving them money to eat any junk food from cafeterias.
Benefit: junk food is never good for health let your child know it. As they will go to secondary school and college they will feel craze for junk food but if you have given awareness regarding the negative effects of these food your child will not go for it.
Avoid any show-off of wealth in front of their friends.
Benefits: show-off is the first symptom of love for stuff and love for wastage of money. If you tend to say in front of his friends that your child has every kind of sports cycle and his room is full of toys of of his choice you will inculcate habit of gaudiness in your child. Such habits cause big problems in future.
Give them awareness about anything and everything.
Benefit: simply let them know what is right and what is wrong. Read more and more about how to rear-up children and apply it in your life. Do right things and your children will follow it automatically.