Tips to teach a Child about Money

Tips to teach a Child about Money-images.jpg

Children should know our purse else they are likely to be a spend thrift as their peers. Even though we parents are earning pretty good salary, the kids should be aware about the expenses we have to run the house. There is nothing wrong in giving pocket money but rewarding them with money for doing their duty is not advisable. To get things done quickly, we are really bribing them. Slowly they will be taken into the habit of bribery and surely they will expect something in return for doing their own duty. Their pocket money should be accountable by parents especially if they are in their teens.

Let's look at some practical ways to teach children about money. The first think that children need to know is responsibility. As parents we have to allocate some amount to the child( based on what you already spend on him/her) lets say Rs.200 and when you next go to the supermarket leave him alone in the biscuits and snacks section and let him chose the snacks for the month. The sanction comes with responsibility a)that the stocks have to last the month b) they will have to be consumed.

This will teach responsibility in the child when he buys because he has to apportion for the whole month so he will spend and consume wisely and in case he does no he will have to bear the consequences. The second issue is that he cannot afford to say no because the choice has been done by him.

Try this.

What you can do to make them realize what MONEY is ? There are a lot of easy ways to do it. Its simple, because its all there in your regular life itself, you don't have to learn it from someone or do practice to teach them.

1. Take them with you while you're going to Provision Stores, Super Markets, Garment Shops, Electronics, or just about anywhere while you are out for shopping (both for your personal and family needs). Let them see how the prices are there.

2. If you are budgeting family and do everything with prior budget, instead of discussing and laying the budget between the parents (husband & wife), make them (kids) to sit along with you as well, so then they can hear what you're talking and planning.

3. While bargaining in the shops, make them to be with you. Let them listen to what you people are doing. After bargaining and buying, tell them how you saved the money. The actual price the shop keeper told and how much you bargained and saved.

4. Discuss about your salary as well, there is nothing wrong in it. After all kids are part of your family and its personal only. The salary which you get, how much you are spending and how much you are saving each month. This will feed in their minds.

5. Discuss on how you save money. In all cases. Whether is Insurance, Stocks, Banks, FD, RD etc., Tell them how much you are saving and how much you would be getting in return and how much you GAIN.

Like the above, there are several ways you can make your kids to know about the MONEY.

The kids will get money (actual money) is their life at some point of time. They will have to earn to get it rather than giving it at the initial stage itself. If you give them before making them to know what exactly it is, then there might be a stage where they cannot live without it.

Just concentrate on the BASIC FUNDAMENTALS. If they know the basics then they can learn all the major stuffs later on which the life will teach them.

Most of us these days are not concentrating on the BASIC FUNDAMENTALS. Don't make them to be or feel like Ambani now itself, its not easy (you know but they should as well). Let them learn first and then practice under your guidance and then see they will take over the responsibility very easily and very quickly.

Sumathi Srini

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