Posted on July 18, 2007 in latest news
Handling money is probably the last thing we teach our kids. This is because even as elders, we have less knowledge on how to teach the young ones about money. But what we forget is that kids will soon figure out that money is an important factor to get their needs satisfied. Therefore it becomes imperative to make them understand the importance and judicious use of money.
Here are 10 tips to help your kids understand money:
- As soon as kids learn counting introduce them to money.
- Show them fake money of different counts and help them count.
- Play with them vendor and buyer game, and make them do fake payments.
- Once they start recognizing real money, give them little amounts to save in their piggy banks. Allowances for little household chores they do are the best way to make your kids understand the importance of money.
- Make use of ‘three-jar-system’ which basically has three jars- one for spending, second for saving and third for sharing. Help them divide their pocket money among the three jars. This way they will understand that the money they get can be spent, shared and also saved if divided properly.
- Let them take decisions regarding the way they want to spend their money. This way they will learn to balance their money and their demands.
- Guide them if you think they are being reckless with money. Praise them if they take judicious decisions. This will encourage wise spending in kids.
- Allow kids to make and learn from their mistakes. Do not ridicule them at any point. Ridiculing can discourage your child from taking decisions.
- If you are low in finance give your kids a rough idea of your problem.
- Occasionally mention your desires to have something very costly. Also let your child know that as it is not affordable you have to say “no” to it. This will make your kids realize what is affordable and necessary.
Money Management, if inculcated at an early age, can make your kid a good money manager.
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July 18th, 2007 at 8:05 pm
Great Post!! Money Management is very important to teach at an early age. Children need to learn that money does not “grow on trees” (as my mother use to tell me when I was a kid). If Money Management is not taught at an early age it is much more difficult to teach later. Children need to learn that they can’t always have what they want. But, if they realize that there is something that they would really, really like to have then purchasing it takes a lot of work. Having extras in life is a luxury… if this is taught at an early age they will learn to appreciate all the “little extras” they have in life. Thanks for a great post!!
Shana Albert