When it comes to children, they would spend every cent if they could. Teaching them about money while they’re young ensures they’ll have better habits later.
Money Management Skills For Kids
The kids from an early age learn the responsibility to control their own finances.
Financial education of teaching the basic money skill should be started at an early age and not left for it to be taught in schools. This education can be easily started by parents as a part of their growing up.
Parents should discuss money matters with children to give them the value of money. Most children know that money is required to buy their burgers, toys and books but they do not know the working of the finances. Parents must discuss about earning, saving, investing and spending with practical examples worksheets and games.
The children should be involved in family finances. Real life examples should be given to make them understand the theories and concepts of money.
The children should also be involved in the way finances are distributed in the various expenditures of the household.
Children should be taken to the bank and explained the working and processes of depositing cheques, drawing money and other transactions. They can be of help in cheque writing.
In the modern times the cash and bank transactions done online should also be exposed to kids.
The children should be allowed to make a budget of their own expenses. This will teach them the real-life experience of money management. They will learn from their own mistakes in a better manner.
A fixed amount should be given to the kids as a weekly allowance and asked them to handle their own books, toys and sweets expenses and also teach them to save from the resources they have.
Teenagers can also be asked to earn their pocket money by doing household chores like cleaning, marketing, taking the dog for a walk or taking up teaching the young children in the house or in the community.
Money management skills for kids is one of the essential skills to be started for children at an early age. They will be able to shape their own financial future with this guidance at an early age. They will grow up to be responsible, sincere and efficient in handling money matters.