“Money is the root of all evils, and yet it is such a useful root that we cannot get on without it any more than we can without potatoes” – Louisa May Alcott
Money Skills- Eradicates Lack of Money, the Real Evil
These words of wisdom describe the indispensability of this ‘medium of exchange’. To be on the money, its absence may not mean the end of the world but having it does turn the world around and so the skills to judiciously plan it are sure to make you richer per diem. This calls for the parents to enlighten their teenager kids about prioritizing their finances.
This knowledge about earning, planning, spending and saving and if the worst comes, borrowing money is what money skills in kids is all about. The way to making this learning more fruitful is through simple but effective steps. To begin with, entrust a pocket money right from the age your kid gains the maturity to relate money with purchases.
This apart from instilling confidence in your child motivates him to come up to your expectations. However minute details about this powerful and practical mode of teaching like the right amount, the right way and the right time to give it are important for the best results. Having said that, there can be no better teacher of money skills in kids than the demonstration effect and so always make sure to practice healthy financial habits because more often than not they pick up your practices.
With the entry of credit card facility, the financial decisions have become more risky. So, in the best interest of your child explain him at length about what a credit card is and how and when is it appropriate to use it. You need to underline the fact that the thin line between ‘use’ and ‘abuse’ must always be respected.
Kids learn from one out of the three sources- People, places and priorities. So it is our responsibility to ensure the best of these around our child. We need to stress upon the uncertainty of future and the benefits of planning it. This will help to delineate the motive behind whole process of money skills in kids. We must not forget that mastering these skills is a gradual process involving perseverance and support.
1. Decide appropriate allowance suitable for your child.
2. Discuss Credit cards stressing upon the difference between use and abuse.
3. Demonstration is the best method. Practice what you preach.