Teaching Children About Money Management

Right from the day your child is born, you start dreaming of its future. Your heart swells up with pride with the cute, delightful, gibberish noise your child makes. You start weaving dreams about your child’s future and want him/her to be the best. You provide better care, too much love, best education, discipline, and inculcate values and think that you have the concoction of a successful life for your child. However after you see your child spending considerable amount almost obscenely on comic books, toys, chocolates and what nots then, you realize that you forgot to teach your child one of the most important lessons in life. The value of money and its management! In today’s world, where the mantra is ‘consumerism’ and where billions of rupees is spent on the advertisements of commodities that make our life supposedly ‘better’, children have all the luxuries at their disposal. The word ‘saving’ is passé for them and piggy banks are obsolete! Teaching money management may sound like teaching them an archaic language, it is very important for making them responsible. Not only the lack of money management skill will leave a large hole in your pocket but also will leave them immature and erratic. Given here are some techniques to teach your child money management.

 

Teach Them Values
Encourage your children to have respect for work. Let them learn how to get money by taking up a work and fulfilling their responsibility. Make sure of a later gratification in the form of a playstation or a cycle. Make them realize that nothing comes for free in this world. At times when your children coerce you for things that they want but cannot have, you have to make them understand how you also have to deal with similar situations. 

Be A Good Role Model 
Children grow up seeing how you spend your money, and they develop their financial attitudes from you. They prefer imitating what you do rather than what you say. Therefore, the best way to teach your children about the values of money would be by being a role model for them. Be responsible in spending money and see your children learning from you! 

Talk To Your Children
The best way to teach them about money is to talk about money to them. You should also let your child know about the kinds of offers that you get at the grocery and other stores, and how to make use of it. Through this, you are teaching your child the best lessons on value of money. 

Learn To Say No
Refrain from being overindulgent and from buying your child every whim that they want. If you go on settling bills on whatever they need, it can indeed harness your child’s outlook towards money. They will forget that money does come the hard way and you work for it. You must learn to say no and that should be a firm one. 

Allowance 
Give children allowance in the form of small money for something they do at home whether it is mopping the home or cleaning the car. Let them learn the lessons of earning money the hard way. Allow them to manage the allowance themselves. Let them have an opportunity to spend their money their way. 

Teach To Give
Charity begins at home. Let them understand the value of sharing, and how it feels like to share your money with the needy. 

Teach To Save
Teach your children how important it is to save money for the future. Encourage them to keep money jars, wherein you can let your child save a part of his/her allowance. Let them use their savings for a bigger purpose later. 

Allow Them To Shop
You can let your children shop for the groceries necessary for a home. They can even make a list themselves and learn to spend on the groceries. It will be a worthy day out for your kids.