Your child needs to be taught how to manage the money that he/ she receives. It is your responsibility as a parent to be mindful of what they learn about savings and expenditure. This can be a real challenge when parents themselves are struggling to make both ends meet. But teaching your child about finances can let him/her reap far more benefits beyond having a good bank statement. When your child is monetarily satisfied, he tends to enjoy greater sense of satisfaction and confidence with challenges in life. Sure you might think that there are things that money can’t buy, but these days, they to a large extent.
Here are a few things you need to teach your child to manage their money better:
Practice managing your money first:
Yes, if you want your kids to understand the value of something, you need to practice them yourself first. If you pay your bills, discuss your incomes and expenditure and your planning, your kids learn that these things need efforts and don’t just happen. When they see you working hard for it, they will realise the kind of responsibility they too are expected to take in future.
Save up for things that will give you greater happiness:
Teach them that they cannot have everything they want at the same time. You can even teach your toddler that he cannot demand the toy he wants all the time. With discipline they understand and with unnecessary pampering they don’t and eventually get spoilt. With an older child, be more patient in making them understand the importance of saving up for something that will not just satiate them momentarily.
Save together for larger family goals:
Individually your goals might be quite narrow but when you look the bigger picture with your family in it, you have plans for them too. So, teach your child to be sensitive to family goals and save up. Enable him to understand what it needs to achieve something on a bigger scale. This will help him/her appreciate the beauty of dreaming together with the family. As they grow older, they will realise the importance of saving pennies in childhood and how smoother it made their journey to achieve the bigger things in life.
Tell them that they are capable enough to make their decisions:
Instil that confidence in your child right from the childhood. You child needs to feel financially secured. Avoid imparting differential knowledge based on their genders. T. Rowe Price survey brings in the reality that parents tend to speak more about finances with their sons rather than their daughters. Consider the fact that financial knowledge is as important as the education they are receiving in school. Educating a girl child is like education a future family. When she manages her money well, ultimately the family saves. Look at the bigger picture and teaching your children will be easier.
Sharing is good:
You know you can sustain or thrive on what you have being satisfied, demands gratefulness. Of course you can desire for more in life but trying to be content in the present is what you need for your peace of mind. Make them understand the beauty of sharing what they have with the less privileged.
The sooner your children learns about the importance of being financially secure, the better they are at handling their expenditure and planning for what they need later in life. So, you enable them or give them the environment to learn money management, it will pay back well in terms of their personality, aims and ambitions. The difference does reflect well and enhances your family bonds.