Teaching children about money management is a necessary life lesson. It helps them understand how to use, save, and spend money wisely. We have seen that to help the kids learn the crucial skill of money management, some parents give their children a fixed allowance as their pocket money while some others take the time to teach their children in other ways, such as through chores and giving them small jobs around the house.
Whatever the approach, what’s important here is to keep in mind that you, being their parents, hold the responsibility of teaching your skills the significance of money management. You can either make use of the ways already mentioned in this article above or use resources like age-appropriate books and videos to instill the skills in your kids.
Today, in this article below, we at The Star Global School, one of the leading private schools in Rohtak, will share with you a few reasons why we believe money management is a crucial skill that your child should master. We will also share a few simple ways to infuse the skill in your kids. Read on.
How Does Teaching Children About Money Help Them in the Future?
Teaching your kids about the art of money management will help them in the future to make better financial decisions. The earlier you start teaching them, the better off they will be in life. Suppose your child grows up without knowing anything about savings and expenditures. In that case, don’t you think your child will remain unprepared for the complexities of adulthood? The best way to ensure that they grow into money-smart individuals and know how to manage their finances well is to help them understand the nuances of money management right when they are young. So, don’t wait for them to grow up to introduce them to money management skills. Instead, begin working towards the same now. The earlier you start, the better it will be for them.
How To Teach Kids To Budget For The Future?
Children need to learn about saving for the future. It is a skill that will help them throughout their lives. Having said that, we also understand that teaching kids about savings can make them feel bored and lose interest. This mustn’t happen. So, here we have a few ways to teach kids about the significance of saving without boring them with the complexities of math:
- Give your child a piggy bank or another container to put change in. When they get too many coins, they can take them to the bank and exchange them for currency notes. Then give them a few to spend and the rest to store in a new cash box. There are many attractive ones available these days for children. They would love to have one for themselves and would willingly use it to store their saved money.
- Teach them to save a portion of their allowance. For example, if their allowance is Rs. 100 per week, give them smaller denomination notes instead of one or two notes of larger denominations. Then tell them you want to see how wisely they spend and save for the upcoming weeks. The better they fare at the task, the larger amount they would be able to save by the end of the month.
Make Your Kids Aware of the Concept of Debt
At The Star Global School, ranked among the leading schools in Rohtak, we firmly believe that teaching children about debt is also important when teaching financial responsibility to them. However, you have to do it a bit later because, at an early age, they’ll be too young to understand its complex nature. Teaching children about debt involves how credit cards and loans work. They must know the difference between a debit card and a credit card so they don’t make any mistakes later on in life. They must also know that too much debt can ruin one’s life. Give them real-life examples to instill this fact.
Money management is a vital skill that must be taught to every child. The lesson should be taught as early as possible so that by the time they grow up, they know the exact dos and don’ts of handling the finances well.