Teaching kids the importance of money is an important part of parenting. A better method of teaching the value or worth of money is by making them realize the various “stuffs” money can buy.
Children need to be taught the various ways by which they can make and save money. They should know how to spend money properly. You have better chances of nurturing money-smart children if you begin teaching kids about money at an early stage.
Here are five valuable tips for raising money-smart kids:
1. Educating them the value of money
Teaching kids about the value of money at an early age is very effective in making them money-smart as they can easily understand the difficulties associated in earning every penny. Make them understand the hardships and difficulties involved in earning money. This understanding helps them realize the worth of the expensive toys, books, etc. which you give them. They become more careful for their things.
2. Giving allowances
Giving allowances for doing chores of the houses is a good practice for inculcating the habit of earning money. It makes them realize that money is earned by hard work and dedication. It is fantastic way to teach them the worth of earned money.
3. Savings account
Open savings account for your kids in the nearby bank and teach them to deposit money, they receive on their birthdays or on any other occasion. At the end of the month make it a point to discuss the amount of money each one of them has collected and appreciate them. This would encourage them to save more money to get your kudos. This practice erases the sense of entitlement that exists in kids nowadays.
4.You must give in order to receive
Teach them to be generous with other. They should learn to give in order to receive. Practices like giving old clothes or toys to poor and impoverished children, helping elderly with their work, teaching younger children in their homework, etc should be encouraged in kids. The kids should be made to realize that they should be generous and helping to others, only then will others be generous towards them. They would easily help them in times of need.
5. Inculcate a sense of personal responsibility
The kids should remember that they are wholly and solely responsible for their money. Money once gone is gone. They should spend it wisely or waste away uselessly, it’s their choice.
Saving money is their responsibility as it’s their money. They need to learn their accountability.
Parents need to teach their kids the relevance of money and its dire importance. We definitely, need to have a proper standard of living. The various commodities which make our life comfortable and enjoyable are dependent on money. Money should be used properly and should not be wasted away. It’s a precious possession and needs to be taken care of, only then will it lasts with us.
So kids! Be smart and save it.
