Sometimes you wish you knew money matters at an early stage of your life so that you could keep yourself from making mistakes that you had made. Parents want their kids to have everything in life and try hard to teach them all the tricks of the trade. It is important that you teach them money management as soon as they start understanding things. Let us have a look at a few tips:
Tell them about money and its importance
Although kids learn from their own experiences as they watch you pay for the products or the services you buy but you must explain it to them. Introduce them to money and tell them that it plays a crucial role in human life.
Use their help in shopping grocery
Parents can teach their kids the importance of money by asking their help to buy grocery at a nearby store. You can prepare a shopping list and hand them over to them. Teach them that they must not go for the brand but for value. At times, you can let them shop alone while you wait for them outside the store. Kids learn a lot from their everyday experiences and use the learning to move forward in life.
Teach them the value of saving
You can talk about saving money and use them for important things. Tell them to have their piggybank where they can collect money and use them to buy their favorite toys. When kids want to buy expensive toys parents usually tell them that they cannot afford to buy that. Kids may develop an inferiority complex this way as they see their friends playing with expensive toys. You must tell them that you are saving money for important things. This way you set god examples for them.
Help them make decisions
Every time they go shopping, you get an opportunity to teach and guide them. You can tell them that they must ask and compare the prices at different store and make their decision. Parents must teach their kids that they have an option to wait for the right time to buy their favorite dress. It helps them save some money, which they can use to buy their favorite stuff.
Open up a bank account
You can take it to yet another level and open up a bank account for your kids. Tell them that it would be their responsibility to maintain the back account. This way you can help them save money along with giving a valuable lesson.
Encourage them to help unfortunate others
Kids observe the behavior of their parents and try to imitate them. Parents must encourage their kids to volunteer to help the unfortunate people who could not afford to make two ends meet. They can use a part of their savings to buy clothes and books for poor kids. It helps them understand the money saved could be used to support and help others too. Help them feed stray dogs near your house and turn them into animal lovers.
Warn them against loans and interests
As soon as kids learn to make a difference between good and bad, you must make them aware of borrowing money and paying interest. Tell them that it is easy to borrow money but you always end up paying double the amount eventually. Give examples so that they find it easy to understand.
Parents must tell their kids about personal finance and the value of saving money. Make sure you do not let them have credit cards at an early age but tell them how it is used to pay your bills at restaurants and shopping malls. Your tips on money management can take them a long way in life.