5 Strategies To Teach Your Children The Value Of Money
Parents, why do you always leave your children out of conversations that involve financial matters? The only time they get to know about anything is when they are 18 years old and this may be because a credit card company must have approached them. If you decide to talk to your kids at this age, there is a high chance that your child's debt and spending habits will hit the roof. It's not true that involving your kids at an early age in your financial discussions is not right. It is better to educate them so that they become savvy spenders or knowledge-based investors. Here are 5 strategies to teach your children the value of money:
Start A Savings Account:
You must open a savings account for your children and it is very important to involve them in all the details like what is the interest rate, returns and possible bank options that this particular account has to offer. As a parent you must explain to your children the importance of opening a savings account. Give them examples of past references of yourself as to how you faced money crisis, and ask them if they want the same to happen to them.
Pay For Hard Work:
Don't give them money for day-to-day activities as they are expected to do it anyway. Instead, choose a chore that is fairly difficult and takes a bit of time to complete. Give your child a fixed rate if he/she completes the task on time perfectly. Ensure you let them know that if there are any goof-ups in the work assigned to them, you will deduct a certain amount from the original rate based on the quality of the work.
Also read: How To Save Money On Cosmetics
Construct A Matching Goal:
Your child wants something really big and you are not going to give him the money, because you want them to learn the hard way. Ask them to start saving and based on how much they save, give them a time frame as to when they will have reached that amount in order to purchase that item they love.
Also read: How To Be Money-Wise While Staying Alone
Play Games That Use Money:
Board games like Monopoly, Payday and Game of Life are great. Search for games online that teach your kid how to save and spend their money wisely. Have a mock drill where they are the owner of a small-time business and ask them how they would go about promoting it.
Let Them Make Mistakes:
It's good to give them a little freedom with spending decisions, but don't be too lenient with them. If they make a mistake let them learn from it and tell them where they went wrong. It is better for your young ones to make mistakes in this stage of their life because this one mistake won't cost them hundreds or thousands of rupees later in life.
It's time for you to start inculcating these habits in your children if you want to see them lead a successful life in the future.