Good money management isn’t the result of grandiose choices – it is the little things you do every day. It’s making smart choices at every turn.
Tiny Steps towards Money Management Make a Big Difference
In the age of pocket money, every child is introduced to money quite early but their understanding of the subject is very limited especially in terms of management. Teaching children this much needed skill acts as a boon for them in their later life when they would gain the most out of it. They can start from the very basic activity of taking an idea on their favourite items to checking different prices on the aisle during grocery shopping.
Putting in the habit of saving money from their regular allowance, and then jointly sitting down to count it shows them how money increases week after week graduating the kids from saving their money in a piggy bank to opening their account in different banks for savings, spending and investing.
Parents should endorse the habit of decision making based on “Need” and not” Want”. They can teach children to shop at the right time and not be enslaved to their whims and fancies discussing the benefits of planning during shopping with the kids elaborately.
Visuals affect children’s mind drastically. So anther tip of money management for children is to stack the bills at a place where it’s visible to children so that every time a bill is paid off and the stack keeps getting smaller, they get a first-hand view of the money management skills being brought into practice.
Lending money to children should come with a cost. Levy interest upon the money lent and explain them the reason behind doing so in order to teach them the concept of repayment on time. If the amount and the deadline for the repayment is on purpose kept lenient by the parents, it will only jeopardise their understanding of the topic rather than helping them in any way. Also never buy their excuse for not making repayments on time as every little experience counts in shaping up their final outlook towards money.
Money Management for children can be ingrained by 3 simple lessons:
1. Earn money by contributing in the household chores in whatever little ways you can .
2. “Need” should be the driving force behind spending. This will cultivate respect for money.
3. Borrowings need to be repaid on time without any laxity.