All parents want to provide the best of everything to their kids and will do everything possible to ensure that their every wish is fulfilled. But parents will definitely not want their kids to be spoilt brats with disregard for their hard-earned money! If you’re wondering how you can provide your kids the best possible money management lessons, which will eventually help them in adulthood, read on.
The basics
The basic step in teaching kids to save and manage money on their own is by giving them an allowance. Very young kids can be introduced to the concept of saving through a piggy-bank. You can, by way of stories and real life examples, explain how daddy and mommy earn, spend, and save money.
To save or to spend
We all learn from our mistakes and know that experience is the best teacher. So let your kids learn from their spending mistakes too. Make them accountable for their spending and be firm on the allowance terms – no advances or extra allowances!
The ‘want’ list
Your kids’ endless ‘want’ lists are excellent teaching tools. Show them how to prioritize their ‘wants’ on the basis of ‘necessity’ and ‘luxury’. Teaching kids how to compare prices and choose the best economical product will help them spend wisely.
Debt and interest
When your kids borrow from you, make it clear that you have ‘loaned’ the amount and expect to be paid back from their next allowance. Kids learn quickly this way – when they feel the pinch! Similarly, applaud them when they save regularly or resist temptations.
Source: ET
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