Teaching children about money can be difficult, especially if your own finances are not great. But, if you follow these simple steps, they’ll be sure to understand the best way forward.
Money management for kids in simple steps
Planning Your Shopping
Next time when you are planning to go out for shopping, make sure that you involve the kids into the whole process, right from listing out the items to be bought to the payments that have to be made to the shop. First of all, sitting back at your house, you need to involve the kids to chalk out the list that has to be bought. Ask them to try and analyze the best way to buy items and ask them to categorize the items into groups such as necessary, luxury, kind of groups and tell them to distribute the expenses judiciously in order to buy them.
Take them along with you and instruct them to look for counters where there is a sale or discount on items. Always try and develop within them a habit of using coupons, so that they can learn to save more. Items like grocery may include some items for them such as chocolates and candies to give them the reason to go out with you. Teaching the kids to save as much as they can on items like grocery and clothing is one of the most important aspects of teaching money management kids.
• Planning your Vacations
Involve your kids to look out for vacation packages on the internet or enquire about them at various places so that they can look out for the best deal which is both comfortable and enjoyable as well as comes in handy. Tell them to make the itineraries of your trips so that you can enjoy the whole trip in a planned way at the best prices. By planning itineraries, your kids will learn to stick to the budget as well as look for ideas to make the most out of the strained budget.
• Planning your Monthly Expenses
Kids should be allowed to put in their ideas to save on your weekly or monthly expenditure. This not only teaches kids to save for their future, but also gives you the psychological benefit to refrain them from unnecessary expenses. Teaching your kid to refrain from unnecessary expenses is a key to money management kids.
Points to remember:
1. The instinct of trying to save money wherever possible should be instilled in kids.
2. Kids should learn how to lead a life using whatever monetary resources they have in hand.
3. Kids should start giving inputs in monthly expenditure planning so that they can prepare themselves for the future.