Kids are very smart and they learn most of the things just by observing you. This holds true for most of your behaviors and habits like reading, eating and other lifestyle habits. So, when it comes to money matters, you really have to be careful as the kids are noticing every move you make with regards to earning and spending money.
Tips for you
Here are some tips that parents can use to teach money matters to their children.
- Money management can be taught to children from early ages. Simple things can be explained to them and they can be made to understand the importance of money.
- They can be told that you have to work in order to earn money and that everything you get is bought with that money.
- You can be a role model in this respect and there will be no need to explain things to them later on. They will understand form your behavior and you can include them in making small decisions about money management. As kids grow up, they can be considered as an important part in making decisions.
- You can plan a budget for an event, for example an outing. You can sit with your children and discuss about the different things that you will need for the outing and the approximate expenses that would be incurred. Then certain selections can be made as regards what services should be availed and what can be left out in order to stick to your budget plan.
- Taking their views and making them a part of decision making will not only make the feel responsible, but also help them in growing up as confident individuals. Make them understand the importance of making a budget plan and sticking to it.
- You can create an environment where money is spent thoughtfully and saving money is given great importance. You can save money and explain the importance of making savings to your children.
- Avoid using credit cards for unnecessary or unaffordable things. This can pass a wrong message and you need to be extra careful in case of elder children and teens as they can learn the wrong ways of spending money.