A practical method to teach your kid about the value of money

There is a proverb “Childhood habits remain till graveyard”. If a kid learned good habits at her childhood, she will hold the same till the end on life. Why I am saying is, teaching money management to your kid should start early as possible. As soon as she starts identifying the world one by one, give her chance to learn about money and money management. This will be with her wherever she goes. Try the following steps.The very beginning step is developing a savings habit to her. To do this, present her a piggy bank when she is in the age of two or three. Give her coins everyday to deposit into her piggy bank. You can see the wonder by test her savings habit by keeping some coins to a place where her attention is getting. I am sure, once if she saw the coins, it will certainly go to her piggy account. Later. you can open a minor savings account for her and put the money whenever the piggy account fills. If she is in the age of six or seven, you can present the pass book to her. While doing this, she will be proud on her savings between her friends and try to save more.When she is growing and you are required to give pocket money to her, give 25% cash to hand and next 25% put to her savings account. Remaining 50%? Read the following.Give her 20 tokens. This is her credit points for remaining 50% pocket money. When she wants you to buy something for her, ask her to give you some tokens back i.e. if she want you to buy and give her a nice skirt, you can ask back one or two coins from her credit. Inform her if she finish the credits, then she is not going to get anything from you. Using this idea, you can make her a good habit of thinking twice.There is a question, how she can grow her credit or regain her credit once if she finishes all the tokens? You can give her tokens as gifts when she is some doing good work i.e. studying well, getting prizes, appreciations from schools and organizations, grabbing good marks etc.. in home, you can award her credits when she is doing a cleaning, watering to garden etc… Try this method and inform others too to follow the same. This will not only give your kids better awareness about money but, will grow a savings habit and thinking ability to identify between needs and wants.Comment once if you feel this article is practical and useful