Ways to Teach Kids about Money

When your child grows up they must understand the concept of money management. They must be exposed to the knitty-gritty of finances at an early age so that they have financial knowledge regarding earning, spending, saving and donating to excel or survive in life, believes Om Public School

Frequently discuss finances with your child of the level that they understand considering their age. Ensure they understand the value of money and know the differentiation between needs and wants. They must know that not all desires can be fulfilled and we must learn to live within our means. Obviously you cannot teach them all at once. Gradually exposing them to the nuances of making and spending money teaching the importance of money will help them do well in life when it comes to finances and savings. Make sure that you don’t force these things on them, present it in an interesting way, if possible, in a fun and engaging manner. 

Every parent must care about their kid’s financial security. For this, imparting the right knowledge to them is necessary. Instilling the positive values in children at a young age is important, especially, in this day and age when they are exposed to multiple things that can make them go haywire or lose track of their goals and ambitions. 

You can begin by following these easy to implement tips by Om Public School

• Give your child some money to manage without your interference
• Help your child set up plan regarding spending and saving
• Use money as a reward or fine them as a punishment
• Teach them or engage them in some regular household chores
• Set a good example for your children by being truthful about money matters
• Give your children more financial responsibilities as they get older
• Be a good finance manager yourself; give your children an inspiration to follow
• Permit your children decide on their own regarding money when there are choices. 
• Appreciate when your child makes wise decisions with respect to their money.
• Help your child to know about ways that suit their age and abilities to earn pocket-money
• Be supportive if your child makes mistakes regarding money and make them understand the consequences in a polite way
• Say no to overspending yourself too so that your child learns the important lesson of not going overboard while buying things they desire. 

If you don’t teach your kids how to manage money, somebody else will. And that’s not a risk you want to take! We’ll show you how to give your kids the head start you wish you had and set them up to win with money at any age.

For very young kids, parents can exercise simple activities on a day to day basis which will make the kids learn about the importance of money by observing.

Keep a piggy bank or a transparent jar

Keeping a piggy bank in the kid’s room is one of the ways to teach them the value of saving money. However, the money growing in the piggy bank is not visible to kids so instead use a transparent jar to save coins and often currencies of bigger denomination. Witnessing the increasing money in the savings jar will make the kid enthusiastic and it will be a fun way of learning about finances. 

Practically show them that everything comes at a cost

Whatever toys or articles your kid picks up to buy show them that price tag and take out money from the piggy bank to buy the stuff. This will convey the message that everything has a price tag which we have to pay in order to own it. If suitable, refrain from buying expensive things after showing them the price tag so that they learn not everything is within our reach and sometime we must let go! 
These simple yet impactful ways will enable children to understand the importance of money at an early age. Being consistent with it will enable them to handle their finances well when they grow up!

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