As parents, we have so much to teach our children but we cannot always teach them everything; and we can also not miss on teaching some very vital lessons which will make or break their lives. One such important thing that every parent must teach their kids is Value For Money. We want to buy the best of everything for our children but we also want to make sure that our kid values them all and doesn’t take money so easy.
Wonderful Ways To Teach Kids Value of Money
We have come up with some very amazing tricks and tips that you can use in conditioning your child in relation with valuing money. So read on and learn how beautifully you can make your child learn the importance of money. With these interesting ways, you can actually help them learn their fiscal responsibilities which will make life a lot simpler for them.
Be an Example for Them to Follow
You can begin this learning process by being a role model for your child. We know that actions have a stronger impact than words. Therefore, if you will spend wisely; if you will save money; if you will prioritize your needs; your child is going to learn the same from you. Always think before spending and keep your monetary tasks sorted. Complaining about no money will set bad example for your kid. So watch your actions!!!
Give Them Pocket Money
Pocket money is the monthly resource a child gets. He has the liberty to spend it one day on his chocolates or use it for the complete month or save from it for some special event. This is a practical and smart way of making him understand the value of money by budgeting it and prioritizing his expenses. This one small step can set many things right for him.
Take Him Along for Shopping
This will be like a practical experience for your child to learn from. While going for grocery shopping, take him along. When he picks something to purchase, guide him through the process of decision making. Like whether he needs it, whether there is an alternative to it, whether it is expensive etc. This will initiate a thinking process inside him which will stay with him forever and he would think before spending.
Help Him Maintain His Expense Diary
As your kid will grow, his expenses will increase with age. To keep a track of his expenses, guide him to make an expense diary where he must write what all monthly expenses he has made. He would learn to calculate and keep him spending under control. He will also have a track of how much money he has saved in a month. This way, he will always have the habit of writing his expenses and monitoring the finances smartly.
Help Him Set Saving Goals
As a parent you must teach your kid to save. Give him a target in the start of the month to save a certain amount from his pocket money. Put that money into his piggy bank or his bank account which will gradually turn into a big saving when he grows up. With these goals, he would learn to save a little with whatever money he has. It is all about inculcating the habit to save!!
A Summer Job
Another interesting way to make him learn the value of money is by making him earn some. Summer vacations are a good time where he can take up some job. If that is not possible then you can ask him to do a certain household chore like watering the plants or washing the car and offer him a little sum of money for his job. He will surely have a lot of importance for this hard earned money.
Discuss Your Financial Decisions
To teach your child financial management, you must discuss with him the decisions you make while purchasing something or while making savings. You may stress on the importance of saving for tough times and how useful are savings to deal with difficult financial phases of life. This would surely motivate him to become more practical with money.
Give Him Small Denominations
Do not give him notes of big denominations rather smaller ones. This would always help him manage his money effectively. It would be easier for him to keep a track of his finances.
Important Lessons Every Parent Must Give Their Children
Here are a few basic things that we all miss on telling our kids. These impact not just the financial aspect of life but also different facets in a significant manner.
- Teach him the different between necessity and luxury: Make him learn the difference between what is important and must not be avoided over what is luxury and ranks second on priority.
- Teach him the importance of reuse and recycle: Buying stuff that lasts longer or can be shared with siblings and friends is always better than picking something that is a waste after one use.