If there is one thing that the kids of this generation just don't understand, it is value of money. Parents today find it hard to say No to their kids, fulfilling every wish and demand. One reason is that most families have one or two children only, and parents want to pamper their little ones. Another reason is that buying gifts is a sort of compensation for not spending enough time withthe children. But no matter what the reason might be, children today no not understand value of money.
How to change this, and teach kids value of money?
If your child can count, she is ready to start learning about money. Most kids are ready around age 3, and it is time for you to start talking about money, what it is, how it is earned, and its value.
- Start the financial education early. Open a bank account for your child, give her money and take her to the bank to deposit the money. Show her the passbook, tell her the money will grow in bank and one day be enough for her to buy a car or pay for her college. Repeat again in a month.
- Make your kids earn their pocket money. Give them little chores and pay them for doing these chores. This will instill values like hard work and also teach them value of money. They will be more careful about spending moeny they have earned themselves!
- Involve the children in budgeting. Make up a weekly budget for the household, draw up a list of groceries and take them grocery shopping. Show them how to stay within the budget by pioritizing needs over wants.
- Show them the credit card bills and how you pay them. Often kids grow up thinking that a card can pay for everything and its potential is unlimited.
- Give them a small allowance, besides the one they earn by doing chores. Now show them how to make a budget and buy the things they want with the money they have.
This practical training will teach them value of money in no time!