Most often people have a tendency to keep kids away from money. It is often thought to cast a negative spell and make them inclined towards it from an early age. However the modern view is somewhat different. They believe that money management is an essential part of life and the early the kids are taught about it the better. It has been seen that teaching the kids about money management from an early age helps them to handle money better. It keeps them away from wasting money on improper things thus making them financially aware and responsible. It also helps them to learn about the process of loans in the right way so as to stay away from incurring debts and live a comfortable life. So, if you are now thinking to give a start to it, here are a few ways in which you can teach your kids about money management:
1. Start at an early age
There is basically no difference whether you introduce your kids to money at a later age or an early one. In fact introducing them to money at an early age helps as during this age the memory is sharp and eager to learn new things. Just at the time when your kids have learned to count numbers and had a lesson on values, give them a practical demonstration by showing them the coins. Help them count it. Start with the lower denominations and end with notes when they are mature enough to understand.
2. Inculcate values about money
It is very important that your kids understand the importance of money and its proper use. Teach them how important it is to inculcate a savings habit from an early age so that they do not face tough time during crisis. After they gain maturity teach them about the different type of personal loans, the ways to get them and the importance of repaying them in due time and the dangers behind various loans.
3. Help them learn savings
It will be great idea to help them learn the technique of savings through practical means. Give them a little amount of money each and ask them to utilize it the best possible way. See how they use it. After they grow up allot some amount of pocket money each month and advise them to save some of it so that they can get some good things with the saved amount later.
4. Prioritize things according to need
The kids often make it a habit to get their wishes fulfilled every time through any means. They take it for granted that they are supposed to get everything that they want. Do not make this a habit. Let them prioritize things according to need. Let them decide which things they really want and which things they don’t. Do not give in to unfair wishes.
5. Set reachable targets which you can fulfill
Do not gift your kids’ expensive items every time they win rugby matches or get good marks in monthly tests. This sets high expectations in the mind of the kids and they do not understand the value of money. Let them have those things only when they have done something worth it after a great deal of hard work. The concept of money is a complicated one and until you teach your kids the right money management tips they are likely to end up choosing the wrong path of debts. So make sure you take the right decision for your kids!