It is an inborn tendency of every parent to cater to their child’s needs in every possible way. They do not mind sacrificing their own desires in order to see their little ones happy. One thing that parents should keep in mind in this never-ending struggle is to teach their children the value of money. A child’s mind is very sensitive and might absorb every little gesture of their guardians. So it becomes the responsibility of the parents to inculcate wise money habits in their successors so that they grow into mindful buyers and sellers. Let us explore some interesting and effective measures using which you can achieve the above-discussed purpose.
As per several reports, a child develops financial habits by an early age of three. By this time these curious minds and quick learners give parents the perfect opportunity to lay the foundation of financial wisdom. Follow these tips to teach kids the value of money in an interesting way.
- The Age Old Piggy Bank
- Teaching Value of Money through Games
- Do not give into Demands instantly
- Teach them Basic Maths
- Take them for Shopping
- Teach them the importance of Work
The Age Old Piggy Bank
Savings is the first lesson in the world of Financial Wisdom. This habit when We all have passed that age where we desired a piggy bank so that we could have our personal savings. Attractive jars or more specifically a piggy bank can motivate kids to inculcate the habit of saving. Parents can guide their children to put in money on a regular basis and take out the money only when the jar is full. This would further inculcate the habits of patience and self-discipline.
Teaching Value of Money through Games
Playing Store games with your children, where you can place a price tag on daily items and role play as buyers and sellers. These games not only teach the basics of buying and selling but also give your children an insight into how they should make the best use of the money in their hand. You can choose items of necessity like fruits, milk and vegetables and items of luxury like toys. Allow them to choose and then guide them if they have made the right choice. In a simple playful way, you will be able to teach them the difference between ‘Needs’ and ‘Wants’.
Do not give into their Demands Instantly
You would definitely want to be the first one to fulfill your child’s wishes. But doing that everytime will not only make them stubborn but you will also raise an insensible spendthrift. Your kids would only understand the significance of money only if they save or earn money for a period of time and then spend it on their own on the things they desire. For instance they want to buy a remote car and it costs Rupees Five Hundred, then tell them that once they are able to save that amount they will get that remote car. You can also guide them that if they give up eating chips or chocolates on which they spend almost daily they would save at a faster rate. This habit would teach them how adults save to buy something they desire.
Teach them Basic Maths
Through simple mathematics make your kid understand that if they have a particular amount in hand then spending would mean that the amount will continuously decrease. Saving from that amount will make things easier in the long run. Through this they would understand that saving would always accumulate and the habit will reflect in their adulthood’s financial decisions.
Take them for Shopping
Taking your kids along for shopping can teach them many things in a subtle way. Keep these things in mind while shopping.
- Do mindful shopping as your kids are observing you and you are their first guides. If you are wasting money they will too tend to adopt this pattern.
- Fix a budget. Tell them that you have a limited amount and you need to shop things by setting priority to items. Needs come first.
- Give them a choice to buy items and if their choice can be bought in the fixed budget. (Again keeping needs prior to wants)
- Tell them that if you run out of money you need to wait for the next time when you have money.
Teach them the Importance of Work
In order to teach your kid the value of money you must make them aware that where does money come from. How much hard work you parents do in order to raise your kids. You can engage them into activities where they learn how to earn small amounts and can save them. A friend of mine in her childhood was a passionate reader but the best thing which she started doing was she set up a small library in her play zone and gave away her books to other kids and earned five rupees per book for two days. She saved five hundred rupees in one month and bought a purse for her mother.
It is your responsibility to raise a child into a mindful adult. These wise money habits inculcated in the right age would reflect in their adulthood’s financial decisions. Teach them,
“Money is a tool. Used properly it makes something beautiful, used wrong, it makes a mess.”- Bradley Vinson.