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Teaching Your Kids The Importance Of Money

Childhood is the best learning phase of life. The lessons that a child gets during this period stay with him forever. Besides the other things that a child is taught at school, one valuable lesson that parents can teach their children is that of the importance of money. How to spend in a well-calculated manner and save for bigger and better things is something that will be really helpful in the later stages of life.

The first and foremost thing to be kept in mind is that parents should take their children along whenever they go shopping. They need to explain to them how budgeting is done; how the things to be bought on the basis of priority. If children pose any questions regarding the same, care should be taken to ensure that clear answers are communicated to them.

Taking your children to the bank can be really helpful. Introduce them to simple concepts like deposit and withdrawal of money. Parents should encourage their children to ask questions from employees at the bank with respect to things like how the cash comes into the bank, how it flows out, what are loans and so on. This will not only make the child learn about money-related issues but also increase the confidence level while communicating with others.

The importance of savings is something that should definitely be taught to children. Kids need to be taught that spending on impulse is not a healthy option. Rather, planning out everything in advance and then saving appropriately to meet all the future needs is preferable.

Piggy banks are something that we all know about. Giving your kid one and telling him that small savings can gradually lead to larger amounts of money will encourage the child to save money whenever he or she can. And finally when the child can use that money to buy something on a special occasion like say a birthday, the joy and satisfaction that comes along will only make him or her realize that saving is indeed a good option.

An effective way of teaching a child how budgeting is done is to give them small allowances on a weekly or monthly basis. Parents should also give them a writing pad and tell the child to write down his or her goals; both immediate and the long-term ones. Then calculate the probable expenses that would be incurred on each of these. Finally the child can decide how to go about spending keeping in mind the calculations made. Saving money and using it wisely are important aspects of the learning and growing-up process of a child. Parents have a key role to play in this. The earlier the child learns, the better it is.

We at Boys and Girls Club of Central Texas, run ‘Money Matters’ program which promotes financial responsibility and independence among the kids. It teaches them managing their budget and saving and investing the right way.

To know more about this program or to enroll your kid in the same, kindly visit us at the Boys and Girls Club of Central Texas at 304 W Ave B, TX- 76541. You can also contact Ms. Carol Dunn (Administrative assistant) at 254-699-5808, Ext: 102.

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