Financial literacy is never taught in schools. Parents have to do it at home. In India parents either give pocket money or provide only when there is need for it. Just giving money to child is not the end of their duty; parents have to guide them while handling the money. By luck, my parents explained me the importance of the money in my teenage only and now, it’s really helping me a lot.
But most of the children become adults with little or no financial knowledge. And the old saying that “Any fool can make the money, but it takes a wise man to keep it”, still holds true.
Here are four ways to make your child understand the value of money
1.Set Good Examples-
As per the nature’s law children follow their parent’s behavior. If parents are over
spending they shouldn’t expect money saving from their children. Even if you are rich
still make your child to realize that money comes from hard work and hence not to waste it.
So keep good examples in front of them and avoid their financially risky life.
2.Teach Basic Management-
Parents should give the allowances depending upon child’s age and whatever they feel right. Always keep track of the things where they are spending their allowances.
Ask them to use money for needs and not for wants. Explain them how to manage the money. Ask them not to overspend on movies, hotelling and other unwanted stuff.
Give them knowledge of banking accounts, shares etc. Teach them to deposit or withdraw money from bank or through ATM’s and paying telephone and electricity bills.
This will help to improve their personality.
3.Let Them Work Part-time-
Allow your offspring to work part time in the area where they are interested. Make such opportunities available for them. They can work in call centers, advertising agencies or in malls. Such exercises help them to face real life difficulties in early stage of their life.
I know one boy who was working in garage in his vacations and then became an automobile engineer. This real time experience made him different than his colleagues
4.Teach Them To Be Generous-
Tell them to share some part of their money with those who really needs it.
Giving up the things to others surely increase the joy in earning.
I have seen my mother giving small gifts to girls in orphanage and the great satisfaction
On her face. She always places such a great example in front of me.
Thus help your child to make and use money in early stage of life.
I totally agree with you such practice would make our kids independent and they will also learn to value money.
ReplyDeleteIn Today's world where people carry more number of Credit Cards than the number of family members.
ReplyDeleteThis is really very important to make your kid understand the real nuance of money. As both of the spouses work they hardly get two-three hours for their kids and in that time as parents they don't want their kids to trouble them by crying for having certain things.. so to get peace ; most of the times whatever kid demands parents promise to give. This ultimately leads into kid getting all the things he wish for and triangular family does not ask kid to share his things with others so frequently. All this harms kid's future. So I feel we should take serious action now to save our future generations from Risky Financial Life.
We should see that kid learns to figure out what all things he really needs and to prioritize the demands; how can he bargain it or buy it from a place where he gets a discount with assured quality. If a drop can turn into Sea, then definitely a Rupee saved every time we shop can turn into bonus money for our family.
hey great job!!!!
ReplyDeleteDefinitely parents can taught to their children about value of money by giving suitable examples in suitable condition.