Most of us do not let our children take discussion related to money matters; we want to pamper them by doing it all for them. However, this habit curbs the wings to our children, and as a result, they start looking for assurance even before doing simple finance-related tasks like operating a bank account. Thankfully, over the last few years, parents have begun to take steps to make children financially more aware and astute. You too can teach your children valuable money-related lessons that will enable them to become independent. Just Inculcate these steps in your child when they are growing up:
Assign chores and allow then to earn money from it:
I find the American culture of paying kids for doing household chores beneficial to explain the value of money. Sweat and hard work that goes into making money automatically confer many lifelong lessons. Start doing this with your child. Assign simple chores – emptying the washing machine, arranging the cupboard, watering the garden during free time. Give your child to work suitable for his age and offer reasonable money for it. A word of advice: Don’t go overboard while paying; otherwise, the whole purpose would fail. The entire concept is to teach the value of sweat that goes into earning every single penny. You could also extend this with a tangible target like your child can buy his/ her toy that he/ she always intended to buy.
Also, do not shy away from telling your child the importance of financial independence.
Teach them to save money in a piggy bank or a savings account:
Earning money is important, and so is saving. Teach your child how to save money. You could give your child a piggy bank where he/ she can store his change and notes. Or you could also open a bank account for her/ him and teach her/him how to operate the same. Assure your child that money in the bank is safe and growing, and he/ she is free to use it any time he/ she wants. Operating a bank account will not only give your child a sense of ownership, but it will also imbibe in him/ her a lesson to save. Moreover, they will be more confident while dealing with money matters when they grow up.
Also Read: How to be a financially smart woman?
Share your money concerns.
If someone in your house received a pink slip, then it is time that you sit down with your children and explain the situation. Remember that all of you are a family, and children are no exception. Sit down and discuss what sacrifices you will make to make sure that the house runs smoothly. A cut or a rise in monthly income should be addressed with all family members. This lesson would prepare your children to handle any dire financial crises later on in life. Also, they would understand the significance of family participation and sharing, that would impart them with mental and emotional strength.
Teach them the importance of being selective
Children want everything; they want to enroll in all the activities buy all the toys in the market, etc. We too, as parents love to splurge on them. This could be a significant mistake as they don’t learn to value and respect money. So whenever your child asks for something, ask them to be selective. Don’t buy everything your child asks for no matter what the occasion is. Ask your child to select a thing or two. Or maybe you could fix a budget and ask your child to buy things that fit in the predecided budget. If your child wants to enroll in four different classes, ask them to choose only one or two and then maybe, later on, he could add more. This will help your child the importance of prioritizing and how to be selective.
Teach them smart money-saving tricks like shopping during sale or bargaining
Every penny saved is a penny earned. Bargaining is a smart way to save money while shopping. Bargaining is not only done while shopping, but it can also be done while settling the overall package with the HR. Bargaining is an art, the early it is learned, the better it is. Smart negotiating techniques go a long way in making your child more confident adults. You could also teach your child to shop only during sales time so that they can easily save money wherever they can.
Teach them to manage and run the household budget
Running household expenses in a predefined budget is a challenging task. Money, no matter how much we earn, is always in short supply. Giving your child budgeting lessons, showing them how to manage the pantry, utility bills, etc. will help under understand deeper money-related issues. Sit with them, and talk about your monthly finances, ask for their advice if they have any. Tell them how you have faced emergency smartly because you saved for a rainy day. Such lessons would impart wisdom and imbibe a conscious lifestyle in your child.
Your lessons could mold your child into an independent young adult. His/her capacity to conjecture and control finances would make him/her confident. A good understanding of finance-related issues would help your child to manage his/ her finances prudently.
So, What do you do to teach your child essential money lessons? Share in comments below.