Imbibe Money Lessons in KidsWealth Prime
“What we instill in our children will be the foundation upon which they build their future” – Steve Maraboli
Parents always wish the best for their children. And be it through valuable lessons or education, parents go out of their way to make sure their children grow up to be responsible and successful individual above everything else. Life lessons, skills, awareness and education are important factors that help in shaping children’s personality while they pursue them from the very beginning of their life. It’s only when we start early, they can learn to handle and live real-world situations as a grown-up! And besides children’s social, academic and extra-curricular learning, financial lessons are an integral part of this learning journey. If you start early, therein lies a brilliant opportunity to inculcate a healthy attitude in your children towards saving and investing – you must have known by now how important these are to have a stable and prosperous life going forward. Regular, practical exercises embodying key financial concepts can help you cultivate positive financial values in your child. Here are some of the key lessons they need to imbibe:
Teach them the value of money
Children need to understand the value of hard work and the value of money and as a parent you need to show how it’s done. A simple way to develop this habit is by discouraging their demand for materialistic things in excess like toys, new clothes or an expensive gadget. When they throw a fit, explain to them that they have to wait for good things to happen. And if they are patient, they will enjoy the fruits even more. You need to also demonstrate how one can value money from day-to-day activities. For instance, when I take my little one to grocery shopping, I ask her to compare prices between different packs of chocolates or chips and show her how to watch out for discounts. Small little practices like making a list before going to shopping, not splurging on buying toys or gadgets, etc. will help you set examples. Making conversation in dinner table regarding ways of saving money or how hard you work to earn money will establish a good foundation right from the beginning!
Live within your means through pocket money
The term of “pocket money” can begin from as early as 4 years, once they begin to learn and understand numbers. Allow children to indulge in unrestricted spends only from their pocket money. Define spends, such as a McDonald’s meal or a new football, which they must buy from their pocket money – make it hard earned. They can participate in household chores or spend “study time” with brothers or sisters or finish reading a storybook to earn their reward aka pocket-money. My child was allowed to go to the gaming zones in malls only when she had earned 500 bucks. For elder kids, you can actually give them tasks like calculating monthly bills for grocery, milkman, newspaper etc. or indulge in their hobbies to create a masterpiece (think arts and crafts). All of this will help him realise the fact that earning money needs hard work.
Help them set clear goals
Ask your children to set goals towards which they want to save or work. Be it a new bicycle or an entry ticket to Summer Camp – help them plan how they are going to achieve these goals. Let them set a time frame and calculate the amount that they will need to fulfil their goals. And work out chores for them which they can do to accumulate the required amount of money. This way they will learn how to set goals and how systematic planning is done to achieve them. Find out ways to reward them extra sometimes so they can feel motivated and stay on track to achieve their goals.
Help them understand all about handling money
Learning through games is the most fun way to instil the money lessons in your kid’s mind. Think Monopoly – where you buy, sell, earn, get a reward, a classic way to teach them how to handle money. Your kids will pay the fine, make the mistakes, and be careful in the next move. Kids take in these lessons effortlessly and can apply these in their lives with some encouragement from your side. You can also apply the same in day-to-day life. For instance, keep a Cash box (one with minimum amount) in the house accessible to your child to make miscellaneous payments – Expenses like buying stationery, or purchasing candies, or a small gift for a friend, etc. And ask your child to keep a track of the total spend. This will help your child learn how to physically handle money notes and how to do the math of calculating the exact change. It will also give them the independence to make payments as long as it is accounted for.
I believe there is no particular age to imbibe the good skills and habits in children and hence instilling habits like saving, investing, dealing with finance, should be begun with as early as possible. And Parents have a great deal of influence on their children and they tend to learn a lot about how to handle money through their parents. Make sure to apply the above ways imbibe money lessons in your kids or if you need help, connect with us now.