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Teach children the difference between “needs” and “wants” as spending wisely is a key to saving money
When adults don’t show an inclination for financial prudence, it somehow appears unrealistic to demand it from children. But it is equally important to learn from our mistakes and share that experience with the little ones so that they grow into smarter persons as far as matters related to money are concerned. It cannot be achieved in one day but you can start imparting financial education to your children gradually. It will help them understand the importance of investment and the need for financial planning.
Take at some of the tips here:
1.Turn pocket money into earned money
Instead of giving a fixed amount every month as pocket money to your children, ask them to earn it by making them do odd jobs like visiting the bank or buying groceries. Also encourage them to save the money they earned from you for future expenses.
2.Needs vs wants
Teach children the difference between “needs” and “wants”. Spending wisely is a key way to saving money. It is very important for them to learn how much they should spend on what to find the best value.
3.Banking and credit
When you next need to visit your bank, take your children there with you for a field trip. This will give them a first-hand experience of how financial institutions work. Allow them to watch customers make banking transactions like deposits, withdrawals etc.
4.Stocks and trading
Take time out to watch business news on television with your children or read pink papers aloud to arouse their interest. Discuss interesting snippets about the top stories. As they grow up, you can then introduce them to credit/debit cards and mobile phone wallets.
5.Keep it simple
Do not force anything on them. Children learn quickly if they are allowed to be themselves. Use stories or movies to teach them about financial matters. You can also use finance themed video games to teach them. Take part, get involved.
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