In ancient times, money was just a means of living but today, it has become the utmost necessity for survival. Considering how the world functions today, you can gain anything and everything with money.
Money not only buys luxury and comfort but also is a means of happiness. Be it leading a luxurious life, living in your dream house, or traveling in the most expensive cars, money can get you anything.
Money makes you confident and gives you an attitude which is usually hard to get. However, managing it the right way is equally important and this responsibility is something to be taught from a young age. Now, the question is how to teach kids about money? How to manage kids and make them responsible?
Well, there are a lot of ways to do this. People who know the value of money and the importance of managing money are the ones who lead a balanced life. They may not be rich, but they have enough to support themselves.
How To Teach Kids About Money
Children try to reciprocate and imitate whatever they see. This is the beauty of childhood. You learn by observing. You observe people at home and at school and get to learn a lot. Our parents are our guides and we generally imitate them.
Families generally set a budget every month for various expenditures. This is a very healthy habit and prevents you from overspending. As parents manage their money in an effective way, similarly, it is every parent’s duty to teach their children the art of money management at a very young age.
Here are a few ways which parents can use to teach children the value of managing their money properly.
- Interact With Them
Parent and children interaction is a very effective way to get your child to not only learn the art of saving money but also managing activities. It is necessary for teaching your child about money. While it is not possible for us to go back in time and teach ourselves the importance of saving money we can certainly ensure that our coming generation learns from our mistakes.
It is always wiser to save a particular sum from your hard earned cash for future requirements. The best way to teach these values to your kids is through games and fun exercises. There are hundreds of games available in the market, life and monopoly being two of them. It can be an effective way to give the appropriate lessons to your child.
- Shopping Time
It is a very wise step towards your child’s mental growth. Shopping is always a fun experience. But next time as you go make sure to take your kid along with you. You may be wondering how this can be helpful in teaching kids about money. Let me explain.
Teaching your kid, the value of money can be done by taking your kid to the grocery store. Play the game of buying the groceries within the set budget that you have already defined to your child. Allow him to get the stuff for you and also to keep a track of the purchases. This gives a lot of scopes for him to learn.
- Pocket Money
It is a very good idea to reward your child with a small sum as his pocket money. This allowance will allow your child to learn to manage his own money. You can set up some restrictions if you want to. It is a good idea to keep a track of what he is doing and how he is spending it. This will allow you to guide him if he makes a mistake and will also give him a chance to grow.
- Value Of Saving Money
It is important to make your child know the value of saving money. There are many ways to do so. You can gift your baby a piggy bank of their favorite color and encourage them to save the money.
In fact, it has been found that giving 3 money banks instead of a single one is more helpful in the child’s mental growth. You can gift those 3 banks of different colors naming each of them. These separate money banks can store money that she wishes to spend, save or donate. You can fix these allowances too. It is a fun way that allows children to use their funds effectively.
- Bank Trips
You can take your children to the bank when you go the next time. You need to explain the terms such as interest and bank account uses properly. You can open up an account for them and allow them to see how their money grows every year. This will also lead to your child’s growth. You can also explain the use of ATMs and credit cards to them. They will learn these technologies by seeing you using them.
- Be An Example For Your Child
As discussed before children are likely to adopt the behavior that they see. As parents, it is your moral duty to set a good example for your child. You need to ensure that you never lie to your spouse about things and purchases.
Giving them the details is also an important aspect. Setting these habits, your child will adopt them too. You need to teach him that materialistic gains are not the real cause of happiness.
Real happiness lies in the small things like spending quality time with loved ones and that is what gives you the true happiness. Teach them values of kindness and helpfulness. The money management is incomplete without the lessons of generosity and charity.
These tips will help your kid learn the art of money management to its best. The skill will help your child grow into a responsible citizen. He will manage his expenses well and will reach great heights of success. However, it is always important for you, as a parent, to keep an eye on your kid. Ensure that you are aware of all the expenses and reiterate the importance of noting the details in an expense diary.
Help your child understand what is important and what is not. Not everyone has the privilege to learn these skills at a young age. So, make use of this opportunity to ensure the overall growth of your child.