To teach your child about money matters, firstly give him/her a certain amount of money to handle .
Give him/her a specific amount of pocket money: To teach your child about money matters, firstly give him/her a certain amount of money to handle.
Make sure it’s given for a task well done or for being obedient. Don’t just give them money as and when they demand it. Not only will this teach them the importance of earning their money, they will also be careful about how and what they spend it on.
Teach them about budgeting: While setting budgets, use the opportunity to teach kids a few lessons about the same. Explain what budgeting is about and why it’s important. Help them allocate a certain amount of their pocket money for daily expenses and a certain amount that must be saved. Also talk to them about why overspending, borrowing and debts are avoidable habits.
Learn to say no: Don’t give into each and every of your child’s demands. Don’t worry about being looked upon as a bad parent, they will thank you for this precise habit at a later age. So when your child regularly demands toys, gadgets, clothes, etc. if it’s not within your budget, tell them so. Or if you’ve just taken them out on a shopping spree refrain from buying anything new for a couple of months at least.
Teach them a lesson a day: Spending money is a daily activity and hence, use these countless opportunities to teach kids important money lessons. For example, you can teach them about making smart choices while shopping or how saving a little everyday is a smart choice.
Set an example yourself: It’s important to practice what you’re trying to teach. In fact, seeing you do it is one of the best lessons. Remember, children learn a lot by observing parents and elders. Be careful and aware of your actions at supermarkets, malls, banks, etc. especially when kids are around.