7 Tips to Manage Your Money Better

Children are generally very good at imitating behaviours of their parents. Parents should always try to practice what they preach in order to succeed as good role models.

Teaching children the value of money and how to manage it well from a young age will help them become responsible adults. The same way a child is taught to eat and behave in the right manner, he should be taught to be responsible with money.

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Here are seven tips which children can be taught to manage money better.

1. Start Training Them Early

Playing shopping at the grocery store is one of the oldest games parents play with kids. They learn the concept of purchasing and denomination of money to some extent. Teach young kids to go and make small purchases and then count the left over change.

2. Trust Them With Money

Start by giving a small amount as pocket money to your kids. Lay out clear guidelines of what and what not they can buy with it. If you give an allowance as a reward for a household chore, they will clearly understand the concept of a job and salary.

3. Encourage Responsibility

Dedicate two jars as spending and saving in the house and let them decide how much goes in which. You can open a bank account for slightly older children and allow them to do the saving themselves. Explain the concept of savings to them.

4. Be Open to Mistakes

There will be mistakes even after the rules so be ready for them. Resist the temptation of fixing their errors by dishing out more money. Private tutors in Singapore are doing a great job in advising families on money management.

5. Let Them Decide

Let the children voice their opinions on their age related money matters. Respect their idea and let them feel heard. Plan a project like choosing a board game for the house, where they do the research and comparisons.

6. Charity 

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Always teach them to keep aside for the less fortunate and have compassion for them. Let them be thankful of what they have.

7. Be a Good Role Model

Always try to be a god role model for them to follow in your footsteps. Brush up your own skills before giving the wrong information.

Guest post contributed by:

Author Bio: Lim Chuwei is a Teacher in Singapore at ChampionTutor and highly advocates the use of cloud based application for teaching and learning.