Simple Ways to Teach Your Kids about Money…

teach-kids-about-money
When kids spend recklessly on their credit cards and get into debt you rebuke them for being careless. The funny part is, it is not totally their fault. As a parent it your responsibility to guide them with handling finances the right way.

It may sound a tedious task but it is actually not so. If you start teaching your kids about money from an early age your task will definitely be little when your kids grow old. They will be more responsible towards their money, loans, savings or budget plans and will appreciate your dedication towards offering them a debt free life.

If you want to start off with the exercise, here are some simple tips to follow:

 

  1. Involve them in money matters: Most often we make the mistake of not involving our kids when it comes to money matters. The general idea is that the kids will get wasted if they are introduced to money at an early age. This notion is not quite true as even if you keep them off from money for a certain time they are sure to learn about it sooner or later. It will be rather good that you introduce them and teach them about its proper utilization than they learning about it in their own way.
  2. Let them choose and learn: There are a variety of child savings accounts available in the market which provides you with advantages of saving for your kid’s future. Research about such accounts along with your kids. Teach them about the accounts and the way they work. Ask them questions on things taught and look for opinions to know if they have understood it correctly. Inform them about the negative effects of misusing the accounts as well.
  3. Help them learn to manage money: The best way to teach your kids to manage money is by giving them a small amount and keeping a track of how they spent it. Sometimes when kids are given total control they tend to be more responsible towards it. Tell them the ways they can spend the money and see what options they select. This will give you an idea of what step you should take next.
  4. Inculcate values about money: Your kids need to know how difficult it is to earn a single dollar and how important it is to spend wisely. Teach them about values of money and the importance of savings from an early age. Let them know the role that money can play in their lives and how a good savings can help them lead a happy life.
  5. Teach them about savings: Inculcating a habit of savings in your children from an early age is very important. It helps them understand the values of money better and also makes them responsible towards money. In order to help them learn about savings allow them a small pocket money and ask them to use it in the best possible way. Set a goal and ask them to use it in a way that will help them achieve that goal. For example a chocolate, a teddy or a toy.
  6. Prioritize things as per needs: You may be right in hoping to give the best of everything to your kids. However, in order to make them responsible towards their finances sometimes it is important to put a check. If the kids get their wishes fulfilled every time it will grow as a habit you cannot change later. Even if you face a financial trouble or fall short on cash you have to take care of their demands. So prioritize things as according to the requirement and let them understand the difference between necessities and luxuries.

 

Author bio: Suzanne Smith is a financial blogger and advisor with
easyfinance.com. She helps readers with informative insight on various
financial issues like credits, loans, and insurance.

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Category: Personal Finance