There is no denying the fact that money is an important part of life. It affords us all the luxuries, gives us a better control over certain situations, and to some extent, secures our future.
Teaching your kids about the importance of money is something you should start at a young age. Often, you may want to wait till your kid reaches adolescence, to talk about financial issues. The fact is that, by that age, your kid will already have formed his own habits, and some of it will also be financial.
Hence it is crucial that you teach your kids the basics of money at a very early age.
6 Ways On How to Teach Kids About Money:
Teaching kids about money can be a bit tricky. You want them to understand the importance of money, but also need to ensure that they know money isn’t everything.
Here are few simple day to day techniques that can help you in teaching kids the value of money:
1. The Importance Of Waiting:
Kids are an impatient lot. They hate to wait for anything, be it
- As a grown up, you have to wait for many things you want, most often due to lack of funds.
- To have the patience to accumulate enough funds for, say, a house, a car or any such amenities can be a tough task for a lot of people. This patience can be cultivated at a very early age.
- Let your kids wait a month or till their next birthday for a much anticipated toy.
[ Read: Raising Your Kids ]
2. Early Lessons In Spending, Saving And Sharing:
Teach your kids to spend, save and share from the limited allowances they get.
- Buy them a portioned piggy bank or simply get 3 jars and label them ‘Spend’, ‘Save’ and ‘Share’.
- Tell your kids to portion their allowances in the three jars.
- The money in ‘Spend’ jar can be used any time to buy stickers, small toys or such immediate products.
- The money in the ‘Save’ jar can be saved up to buy something later.
- The ‘Sharing’ money is another important lesson that you should teach your kids. You can help them send the money to a charity or donate to a cause.
3. Using ‘Choice’ Wisely:
Making choices and prioritizing is a very important childhood lesson.
- We all need to make choices, financial or otherwise, throughout our lives.
- Rational thinking and reasoning should be inculcated by providing your kids small choices in their early childhood.
- If your kids want two gifts for their birthday, ask them to choose one.
- You can also ask them to choose what they want to do with their saved money.
4. Games To Teach ‘The Value Of Money’:
There are a number of games that will teach your kids how to deal with and manage money.
- The much adored game of Monopoly, a staple across generations, has all the elements of monetary decision-making.
- Don’t just play the games, but discuss and dissect every move as a point of argument.
- This will help in further building up your kids’ monetary sense and reason.
- These games will make financial lessons fun and worthy of remembering.
[ Read: Ways To Ensure Good Habits ]
5. Money Education Online:
Various banks and financial organizations have taken to the internet to spread awareness, especially among the very young future investors. Their websites showcase videos and interactive web pages that help kids of all ages take an interest in the different financial issues.
Instead of always you preaching the subject, allow these ready made lessons to teach your kids.
6. Make Learning Interactive:
Teaching your kids about money should be made as experimental and interactive as possible.
- Any theoretical knowledge about savings or funds should be kept for an age when they understand their importance.
- Talk to them in a way that is suited for their age.
- Let them handle the budget while grocery shopping.
[ Read: Child Behavioral Chart ]
As your kids grow up, you can explain your own financial decisions to them in simple terms. This will help them manage their own money more effectively.
If you make things fun and goal-centric, your kids are bound to be more attentive and the lessons will stick with them for life.
Do share with us if you have any other interesting ways to teach kids about money.
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