Nobody teaches finance in school classes to forget about teaching them to kids; they are not even taught in senior classes. I think finance education is critical in life, and every parent should try to teach their kids the values of managing money as soon as possible.
The fact is if you do not know how to handle your money then slogging day and night and earning money won’t give you the way of life you want to live.
Managing finances can make them more responsible and may also develop a clear perspective in their mind about what they want to do in life ahead.
Talking to kids about the family finances can be difficult, but research says that not doing so can leave your kids worried. Opening up a healthy discussion about money can increase understanding, and pocket money is a great vehicle to do so.
If you are also thinking of ways to talk to your kids about family finances, but are not able to start and decide how to do this, worry not, we have compiled a few tips and guidelines for you so that you will be able to talk to your kids and explain to them everything about managing and handling finances.
One of the right ways to teach your kids about finances is to give pocket money to them. Teach them how to use it, if they want something, ask them to save it from their pocket money. This way, they can get small learnings for life and also understand the value of money.
Kids often make unnecessary demands; this way, they can understand how much their unnecessary things cost and will save for something they need in real life.
LEARNING ABOUT MONEY FROM SCHOOL AND CLASSROOMS
Ask them to learn about money from classes and get into a discussion with them about what they are learning from the school about money. You can also talk to the school authorities to inculcate some finance education classes into the daily schedule.
OPEN A BANK ACCOUNT
It would also be a good step in the path of teaching your kid about finances. This way, they can check the amount of money they have in their bank, and also they will be able to keep track of their spendings.
USE JAR LABELS
Ask them to save money in jar labels. Some of the names which you can use are spent, save, and give. This way, they can understand the importance of the three terms and will value each of them.
Ask them not to involve in any unnecessary spending which is not required and always save for future needs and if possible, always do some charity.
These teachings will inculcate a sense of responsibility and empathy in him.
INVOLVE IN HOUSEHOLD WORK
Involvement in Household work is the best way to develop any skill in your kid. Parents sometimes commit a mistake of not involving their kids in the daily household works, and this has a significant impact on the life of kids at the later stage of life. Always remember that some of the other days, your small kid has to live on his own in a big city. And if he is not aware of the necessary household activities, it can have a massive hole in his pocket or else your pocket. If he does not know how to wash clothes, he will use the laundry. If he does not know how to cook the food, he will order food.
So try to teach him the household chores and also offer him money when he completes any task. This way, he can learn and develop many skills and also learn about money.