It is necessary to teach children to be financially responsible so that they know value of your hard earned money. Read on to find some tips for raising financially responsible children.
Just like the extensive preparation that is done before the arrival of the baby. Things need to be done by parents at different stages of the child’s life. While you must enjoy with your kids’, take them on picnics and play with them; practical things also need to be done. For example, a primary concern of parents are the kind of school they will send their child to, whether it should be an English medium or an international school, etc. You need your kid to be worldly wise when they grow up. Implant these lessons in them at an early age.
1. Source of Money
Explain to your kid where the money
comes from. It is best to sow such ideas in their head early. Money is not produced in a bank or ATM. Tell them that it is earned. One cannot simply go to a bank and get some money.
Kids often demand a lot of things without caring if you can afford. They get angry or sad when you do not fulfill their demands. In order to stop this, explain to them about budget. Tell them in simple terms that everybody needs to have a specific amount they can spend. Make them realize that you cannot afford everything for them.
3. The Need to Wait
It is a good idea to tell them that if they wait they will get good things in life. This will make them stop whining and actually wait to get the stuff they want. This is really a life changing lesson. Tell them it is better to save money and then buy, than get dragged into the debt system.
4. Impulsive Buying
It is essential that you curb this habit as young as possible. If your child spends their allowance as soon as they get them, talk to them. Explain that impulsive buying will leave them broke and prevent them from buying basic necessities.
Groom your kid to save. This is probably going to help them for life. Teach them to save their pocket money
and not spend all of it. Tell them the benefits of saving
and its advantages.
6. Account for Your Money
Teach your kids to keep an account of where they spent their money. This will prevent them from losing track of their money. Ask them to maintain a small notebook and write down what they spent and on what they spent. Loosing track means losing money.
7. Set Priorities
As one cannot afford everything it is necessary that they have a list of priorities. If kids make a list, they will know what to spend their money on first. Basic needs like food, school stationery, and medicines should be given priority over toys, candies, ice creams, etc.
Kids should have the ability to judge what’s good from a young age. They should know thoroughly and consider a thing’s usefulness before they buy it. They should also properly check the item.
9. Learn to Share
Kids should share what they have with friends and family. This will make them a better human being. It will teach them to make better social relations.
10. Pay for Chores
Your kid needs to learn the importance of money. You should give them money only when they do some chores. If they help clean up, pay them. This will aid them to value money
These things need to be done to make your kid worldly wise and aware. If kids imbibe good money habits as a kid they will have a better future. They would not be deceived or end up in debt.What are the ways to raise financially responsible children? How to teach children the value of money? What are the ways to teach children to save money? Discuss here.