Monetary matters are best kept away from children, isn’t it? Wrong! Your kid needs to have a solid founding in economic dynamics and the importance of money. When children are taught the value of money at an early age, it benefits them later in their lives. They gain enough maturity to handle money matters on their own in your absence.
This leads to a respect for money and helps them regulate their day to day expenses.
Here are some tips that would help you teach the importance of money to your child:
1. Encourage them to Save
- Children should be taught to make small, continuous savings all through the week.
- These savings could be stored in a piggy bank and later used for buying their favorite toys/commodities.
- Parents should reward and appreciate children when they successfully complete the task and gather enough savings on their own.
2. Teach them the value of investments
- Instead of purchasing expensive unnecessary toys in the spur of the moment, encourage children to save money and later use their accumulated savings to purchase better items they really need.
- Encourage children to buy books and useful DVDs since these would not only serve the purpose of entertainment but also help them learn.
- Prompt your kids to set goals about the amount they wish to invest in something, and show them how waiting for the right time to invest can give them better control over their money and reduce wastage. Setting goals can really help your children plan ahead. Click here to find out how.
Teach kids the importance of investments
3. Reducing Wastage
4. Follow the rules yourself!
5. The importance of paper currency
Paper currency helps children understand the true value of money
6. Money smart schools
- Many schools today are money smart schools in that they teach children to be appreciative of the value of hard earned money and how it must carefully and saved and spent.
Various fundraising activities are organized in schools that play an extremely vital role in helping children understand the importance of money