Financial struggle is a legitimate problem faced by many today as they
fail to manage and plan their finances properly. Evidently, teaching children
about something that grown-ups often fail to process is not an easy task but
nevertheless extremely important. The problem many of today’s youth face is the
management of finances. That ends up them in facing problems in their
future. Parents should initiate to teach children value of money from an
early age so that they understand its importance. Parents being the most
influential figures are the ones to educate them why financial skills are
crucial in life.
Want to teach children value of
money, here are five powerful ways:
1. Encourage saving
Children at a very tender age will obviously not relate to finances and
skills related to it. No matter how hard you try as a parent. The best
alternative to teaching about money is gifting young children a piggy bank.
This concept has been around for a while. Put all cash gifts from birthdays,
events or any kind of festival together in the piggy bank. Simultaneously
you can add a little every now and then too. Make it a habit of counting the
accumulated money every 3-4 months or so. Buy them a toy, or an instrument or
anything of his choice from the same. This not only teaches your child about
savings but also inculcates an idea of goal-setting at an early age.
2. Discuss
Ensure your child
grows up with a sound knowledge of finances and learns the essential tricks to
manage money. You can make it a habit of involving your child while planning
your monthly expenses for the household. Even better take some time out and
help them manage their saved pocket money. Impart advice on how to spend them.
3. Choosing expenses
One of the main aspects of inculcating financial planning in your child
is also making him aware of the expenses. Teach him to spend money
wisely, spending in the right choices. Children will not understand
rationalizing expenses and this is where you as a parent can help. You can
teach him how one should not always spend all their savings. For example,
give him choices of things to buy with his pocket money. Then, help
him choose the best essential thing to buy, instead of buying more things. This
will also teach him to not spend all at once and save pocket money for future
goals.
4. Chalk a budget
We all know how important it is to plan a monthly budget for our
household. And then go about the month with our expenses keeping our tentative
budget in mind. Try to incorporate the same method in your child. Give him
pocket money and encourage him to plan ahead for a week of expenses based on
that.
5. Teach investments
This will eventually be essential with time. Teach them about
savings account and investments, where they can not only save but also watch
their money multiply. Money properly invested from an early age can be
extremely important in the long run.
Including household
chores in their daily routine is the most effective and simple method to
teach children value of money.
