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Wednesday, Apr 23rd

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Kids and Money Management

Kids and Money Management

Women have a great responsibility to teach their kids money management skills as these skills are very important to make them understand the importance of saving. Researches state that parents should try to make their children financially responsible. Kids can live a happy life if they develop a mindset of spending money only for their needs and know how to control money. Kids will understand that money should be earned but they can feel difficulty in maintaining the budget.

Here are some tips that will help you to teach money management skills to your kids:

Be a good role model: Children have the habit of following their parent's footprints. So, try to be a good role model for your children. Teach your kids the value of work and to be financially responsible. Your child should know that there are many things you want to buy but can't afford. This will also help your children to set a financial goal.

Discuss money management with your children: Many parents think that their kids are too young to teach them the money management skills. Discuss with your kids that you plan your expenses according to your earning. Take them with you for shopping and explain them your purchasing decisions. Get some expensive items on sale and explain them that you can afford it because they are on sale.

Say 'no' to your kids: Saying 'no' to your kids is one of the best ways to teach them the money management skills. They should know that they you can fulfil only their needs and not everything that they want. This will help them to prioritize their necessities.

Set limits for your children: Stop buying everything your child wants even you can afford it. Set limits for them so that they can learn that they have to work hard to get everything they want.

Teach your kids how to share: You should encourage your children to contribute some part of their pocket money to charity. Teach them how they can buy some occasional treats for the family. Teach them to make their own birthday gifts for their friends instead of buying it from the market.

Management of small amount: You can give your child a small amount of money and guide them how to spend it. Don't impose your decisions on them and let them make their own choices. Don't help them even they are facing difficulties in managing them because they will surely learn from their mistakes.