Money Management for Children - Made Easy
Children can grasp good money management skills at early age, if it is taught in the right way. The sooner they learn the ropes of managing their money, the faster they will learn to use it wisely. The earliest age to do is between 7 and 10, because that is when they will start to learn basic money matters in school too. Assign simple and suitable jobs around the house which children can perform without much of effort. Also, allocate an appropriate amount which the child will be paid as salary to the child. After the\he assigned job has been successfully completed by them, pay them their earnings. By doing so, the child will realize the value for his/her work and will also strive to earn more. The next is to show the child how to spend his money wisely. Explain the three important categories that a child should do with his money - saving, charity and spending. Split it as 40-10-50 or 50-10-40, whichever is suitable to you. This way, they learn to spend some of their hard earned money on their favorite things, give away a small portion for others and importantly, save a portion of it so they can use them in the future to treat themselves for the great job that they’ve done so far. Visualizing a savings jar getting filled up will show how they reap benefits from their hard work; similar to, how they feel when they see sprouts from the seeds they’ve sown with their tiny hands. Give the child a transparent box or jar where they can put in their savings amount every week. Teach children to give away charity money to church or some old-age or children home. This will show they how blessed they are and instill values like humbleness and simple living in them. Now that the financial classes are finally over, take them out buy their favorite toy or dress or video game. These small lessons on savings will remind them to be responsible for their actions and will prevent them from falling into debt traps in the future. As a parent, use budget planning software offered by personal budget planning websites which you could demonstrate to your kid as he grows bigger. This way, you become an ideal parent for your child, giving him financial security at all times. |