Thursday, March 31, 2011

Save money with kids

You are working day and night to meet ends and secure bright future for your kids. You want to provide all the facilities to your children which as a kid you wanted to have but could not avail. Why not! But in the process, it is important to make kids aware of the most crucial thing which make the world go round and that is MONEY, honey.

Money matters are important aspect of living. Parents often keep the issues relating to money and it's saving with them. And the children remain unaware about how their needs and wishes are met and from where the money comes to fulfill these demands. As a result, the kids are not able to learn about some hard aspects of their life; firstly the hardships suffered by the parents to provide a happy life and secondly the importance of money management.

Teaching money matters may seem to be a difficult task to parents. But it is not so. The concept of money can be introduced to a child as soon as she learns to count! And as the child grows older she can be taught about different denominations and coins and which coin is bigger than the other. Later the parent can move over to the concept of the earning money by way of doing job and spending it on needs.

You can make your child learn about money and its importance by:

Take an active interest in teaching the money concept to the child and give him or her information about currency and coins.

Tell the child that by way of money, important daily items of house can be purchased.

Take the child along for grocery shopping and show him labels and prices of various items. Also teach him to purchase things wisely so that money is not wasted on unnecessary items.

Educate him to differentiate between needs and wishes and help him to prepare his shopping list on the basis of mandatory items required for his daily needs.

Provide allowance to kid based on his weekly or monthly needs. Ask him to jot down his expenses so that he can keep a track of inflow and outflows of money on his own. Make him save a small amount of money out of his allowance.

Avoid associating allowance with the fulfillment of daily house chores by the kid.

A teenager can be further taught about the importance of saving money and need for a bank account. He should be taken along to bank to make him learn about various bank transactions.

The growing children should be involved in open decisions on finances and ways to make vacation trips and purchase of big items like an A/C or refrigerator as economical as possible.

Encourage the child to donate old toys and clothes and other articles so that these are put into good use.

Make the child aware about the disadvantages of taking loans and dangers from a credit card.

All these steps will make the child money conscious and prompt him to save money and use it judiciously. The money management concept will have lifelong benefits and protect the child from financial hazards throughout life.

No comments:

Post a Comment