The importance of money and developing good practices regarding the use of money is extremely important in life. From a very young age, parents should take the initiative to instill in their children the notion of money, its worth in life and the various good practices that will enable them to manage money smartly once they reach an age where they would be expected to. Young children need careful guidance to fully comprehend the hard work that goes into earning money and to understand why it is important to manage expenditures, and learn to save. As parents, it is a duty to teach your children smart money management and to encourage good habits from an impressionable age.
Following the tips below will help you when you’re trying to teach your kids how to manage money smartly.
- First up, it is important to remember that as parents, your behavior and your practices are seen to be exemplary by your children. Therefore, know that your children are always watching how you handle money and make sure that you set good examples for them to follow.
- To encourage good spending and saving habits, set a reasonable allowance amount for your child. You can raise the allowance slightly each year, while encouraging your children to plan their own purchases while staying within the restrictions of the allowance amount. Tell them that if they need to buy something which exceeds the allowance, they need to save and eventually make the purchase later.
- Make sure that your children help out with family chores. Correct their mistakes with constructive criticism and encourage good habits. Occasionally, you can choose to make extra income opportunities available by offering a reward for performing particular chores.
- It is extremely important to teach your kids to save money from a very young age. Educate them about good saving habits and arrange for a place where they can save their money. Monitor the savings activity and regularly advise your children regarding good saving habits.
- Children need to grow up and become wise consumers. Therefore, if they want to purchase something, ask them to think about it and consider other alternatives before making the final purchase. Teach them how to distinguish products based on the quality and help them develop a smart, non-gullible attitude towards advertisements and promotions.