Parents are the first teacher to a child.
Of course they are! The moment a baby is born, his/her parents are the one to make them learn each and everything, even how to speak.
With the below given tips, you can even be a great finance teacher for your kid in his growing age. Go through them and be the best guide.
- 1. Educate your children about needs and wants. Make them understand that spending money on needs first is judicious.
- 2. Teach your children to save by giving them a weekly allowance. Make them learn about saving simply by putting money into a piggy bank. Inspire them to save and watch how the savings grow.
- 3. Teach them to compare prices that give the best value by taking them along to a grocery shop. For instance, you can allow them to choose their own birthday gift.
- 4. Do not make them realize that you’re not financially sound or you’re poor. This may worry them. Rather, you can tell them about the importance factor while making a buying decision. This would teach them the importance of good decision-making during expenditures.
- 5. Help your children to make a budget to control their spending before they enter primary school. Children should be taught to separate some money for savings before spending on budgeted items.
- 6. Use cash to purchase items in place of using credit and debit cards in front of your children. This also teaches them the concept of interest.
- 7. Teach how savings can lead to bigger benefits in life. You may also show them how small expenses can be increased and how the money may have been better saved for something more desirable.
If the kids are taught things at such an early age, they never forget those things throughout their life. And giving them the knowledge of managing expenses and saving will definitely help them in long run.