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in Business Service - 08 Feb, 2016
by OAuthor - no comments
How to teach money management to your kids

To raise happy and healthy children with a good sense of spending money judiciously, it is important for parents to start this at the early age of the children. Your children will be in a better position to handle life’s challenges if they have an ingrained value of money matters. The ability to save and manage money wisely will make your children successful in later life. The best thing that you can do as a parent is to discuss money and the expenditure of your home with your kids. Let them learn how hard it is to earn money and therefore, money earned must be spent wisely in every aspect. You can be the best role model by managing your money matters wisely so your kids can learn smart spending habits. Here are some ways in which you can teach money management to kids.

Teach your kids the importance of savings

Children may not understand the complexity of your household bills, but they can see you handling the payments. You can discuss openly with your kids about budget management of your household and the importance of saving something aside. Your children will learn that you can pay off bills by cutting other expenses to save a penny or two here and there. This will naturally help them to understand the importance of savings and maintaining a proper control over unnecessary expenses. They can start saving their little pennies in their piggy bank when they are still very young. You can gradually upgrade this to actual savings accounts in the bank and let them know that this is for their college fund or medical fund. It will greatly help them to appreciate the cause for which they are saving up.

Teach your kids about earning money

Children can learn more about money management if you allow them to do small part-time jobs to earn their allowances. This need not jeopardize their academic performances, as it can be small jobs like delivering jobs, baby sitting or even walking the dog. During the summer breaks, they can earn money by selling lemonade in the beach or even walking elderly people around the block. When they earn their little allowances, you can help them to save a part of it in their piggy banks and allow them to spend part of the money. Such opportunities to earn their own money and the freedom to spend on things they need will make your kids more responsible towards money.

Conduct monthly kids shopping

The best way to teach your kids not to blow your budget would be by organizing a monthly shopping trip with the kids. Here, you can ask them to make a list of things they need and apportion money to them accordingly from their allowances and let them do the buying themselves. Stick to this budget with a commitment and do not cave in when they ask for more beyond their shopping list. This will make them understand how things work and why money needs to be spent wisely. They will eventually put the most important need on the list rather than stuffs they really do not need. This will help in reducing wastage as well as building good spending habits in your kids.

Although there are many other ways you can teach money management to your kids, these are some of the smartest ones you can start with. One day, when your kids grow up and become successful people with respect for the value of money, you will not regret being strict and firm when they were young.