It’s important to teach growing kids the concept and importance of money. This will not only help them understand how to manage their finances as adults but even help them know the right way of saving and spending. If you’re looking for ways to help your kids understand the importance of money, then you are at the right place. We have a few tips that can help your kids learn about money management.
1. Save Money in Transparent Jars
Yes, piggy banks are also a great idea but when it comes to visually seeing your money increasing, transparent or glass jars are a much better solution. Kids will be fascinated to see how little by little the money is increasing in the jar. When the jar is full, take out all the money and count them with your kids. Tell them how much did you both save and in how many days. This way your kids will get the idea of savings.
2. Take Your Kids To Bank
Kids love watching fascinating places, so take them along on your next trip to bank. Give them a brief idea about banks, how they work, and why it is a good idea to deposit your hard-earned money in banks. You can even open an account for your kid and motivate them to save more. Also, teach your kids a bit about the pros and cons of debit cards, credit cards, loans, interest and so on. It is one of the best ways to teaching kids about money.
3. Set An Example
Kids learn from what they watch. So, if your kid watches you spending carelessly now and then, they might also do the same and care less about spending on unnecessary things. Hence, be mindful while splurging in front of your kids. Even avoid fighting about money with your spouse, family, or friends in front of your kids. It might send a negative message to your kid. Instead, try to make your child understand about money in a positive way as much as possible.
4. Let Them Spend From Their Savings
Instead of lecturing them about why not to buy the same toy that is lying around in the house in a perfectly good condition, take them to the store and ask them to buy it from their savings. Once the child will realise how their savings decreased from buying the same thing they already own, they will be mindful about such purchases from the next time. You should also set budgets for your kids to spend on their items. This will help them to decide better.
5. Avoid Taking Them To Only Branded Shops
Instead of taking them shopping only at branded shops, consider them taking to thrift stores, charity shops, local shops and other such places. This will give them an idea about the price differences on similar items and show them ways to save money in longer run. Also, avoid buying items on kid demands, especially toy, dress, or similar items. Tell them the importance of need and want. This will help your child in making wise decisions.
Remember, teaching kids about money at the any stage will not be easy. It will require patience and constant effort on your part. So, follow these tips and teach your kids about money.
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