Money doesn’t shower from skies, like raindrops. It is hard-earned, and it is very crucial to teach your children the importance of money, and proper financing. These learnings would come in handy, when they grow up, and become independent.
Five or six year old’s start to acquire the cognitive skills required to grasp basic monetary concepts, such as recognizing coins, finding out how to collect cash, and matching small sums of money to things they want to purchase.
Here are some activities you can do, to teach your children the importance of money and savings:
Teach Children How to Save Money:
Take your children shopping with you, teach them about sales, and offers. Teach them how coupons can be used, how buying something in bulk can be an economically better option. You can also make them save up for a toy, or something they want, so they can understand how each penny counts, and they feel grateful for having resources. Get them a transparent piggy bank, so they can see their money grow.
Give them pocket money: Now, this is entirely up to you. You can give them a set amount of money each month or so, or you can also reward them, for completing small tasks like keeping their room clean, getting good grades, finishing homework, eating their vegetables, etc. This would induce good behavior, as well as teach them the importance of money. They would get to know how hard earning money can be.
Make a Monthly Budget :
If you are giving them pocket money, you can also set a minimum limit (as in bank savings account). They would have to maintain that minimum balance, so they would be able to manage their expenses better.
It should be enough for them to buy minor items, such as trading cards, hair clips, or ice-cream bars. The next time you go shopping, tell your child to bring their money if they think they might want to purchase something. What if your child has spent their weekly/daily allowance and still begs for ice cream? Tell them to wait until the next allowance day.
Play Shopkeeper Game:
You can keep some household items, like pulses, rice, ketchup, etc, or maybe their toys on a table. You can become a shopkeeper, and tell them to come buy stuff. Give them minimum requirements: rice, flour, etc. are essentials that they must buy. They can decide the quantities. Give them a budget, so that they learn how grocery shopping pairs up with saving and budgeting.
This would also pair up with basic mathematics they learn at school. Explain to them how they can balance the requirements: for example, they buy rice, pulses, flour, etc., now they have an option between 2 balls and one pencil, or one ball, three pencils, and a chocolate. Let them choose how they want to budget their finances.
Help them count up the right amount, when your child decides to make a purchase. Have them hand the cashier money, and wait for the change.
Teach Them Difference between Need and Want:
Teach them how food items like rice, pulses, etc. are essential, whereas chocolates and treats are non-essential. A balance must be struck between needs and wants, in order to manage resources and finances effectively.
Always advise your child to make smart spending and concentrate on saving money. With one of your own personal experiences, you can tell them how you saved money to acquire one useful item. It will take time, every time they fish their pocket for money to buy something, you don’t need to watch over your kid. Encourage them to make independent decisions about making money – while evaluation is something you can support them with! This is not a smooth road but it will eventually be figured out by your kids.
Money plays an important part for the specific reason of our lives. If our basic need will be fulfilled, or live a comfortable life. It plays the main role in the various fields, such as education , health, to satisfy the basic needs of our lives.
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